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Federal Reserve Bank of St. Louis
19 3 0
Page 5
New Addition to Care
for Steady Growth
of Business
Seventy-two years ago the First Na
tional Bank of Omaha . . . then known
as Kountze Brothers . . . was started
in the above one-room building-.
Today we are in one of the largest
bank buildings in the middlewest. At
the present time we are erecting an
addition to care for the increase in
business. The new addition will dou
ble the size of our banking floor.
It is a pleasure to carry out plans to
constantly serve you better.
Nebraska’s Oldest Bank.
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Federal Reserve Bank of St. Louis
First National
I Bank of Omaha
FIRST TRUST COMPANY
v________________ ____________________________ >
3
ast>
minute
¿inks
/CHICAGO’S newest downtown bank, dealers’ liens whether of record or not. 001,442,273 and deposits of $172,087,769; Bank of Montreal, with assets of
^ the Chicago Bank of Commerce,
$965,336,997
and deposits of $772,will open for business on either April
5 or April 12 at Madison and Dear
AN ADA’S nine largest banks re- 333,260; and the Canadian Bank of
born streets. The bank has been in
ported total assets of $3,704,015,- Commerce, with assets of $801,255,802
process of organization for several 960 at the close of 1929, and an in and deposits of $563,340,551.
months. Four additional directors have crease of $103,915,964 in deposits over
been announced. They are Walter S. 1928, according to recently compiled
Aagaard, Francis J. Plym, E. P. statistics.
'T 'H E FIRST annual mid - winter
Strandberg and George A. Hughes.
Total deposits of these Canadian
1 trust conference of the Iowa Bank
Henry S. Henschen is the president.
banks for 1929 amounted to $2,818,- ers Association was held in Des
248,588 as compared with $2,714,296,- Moines Thursday, March 20, under
p A U L L. HARDESTY, of Chicago, 624 in 1928. The report shows an av the sponsorship of the committee on
has been elected an assistant vice erage ratio of 18 to 1 in deposits to trust powers and trust business of the
president of the Chatham Phénix Na capital, and an average ratio of 8.11 association, of which J. M. Hutchin
tional Bank and Trust Company, New to 1 deposits to capital, surplus and son, trust officer, Cedar Rapids Sav
York. Mr. Hardesty has been on the reserve.
ings Bank & Trust Company, is chair
official staff of the First National of
The average net income per share man.
Chicago, and prior to that of the for the bank stocks in 1929 amounted
The program was entirely informal
Union Trust Company. He will divide to $18.33, ranging from $26.61 for the and the round table discussions were
his time between New York and Chi stock of the Bank of Nova Scotia to led by various Iowa bankers selected
cago, and will direct the field opera $12.09 for the Provincial Bank of throughout the state.
tions of the Chatham Phénix National Canada.
The members of the committee on
in the Middle West from the Chicago
The report shows that three Cana trust powers and trust business of the
office.
dian banks have deposits in excess of Iowa Bankers Association are as fol
$500,000,000, and assets of or approx lows: J. M. Hutchinson, chairman; C.
YYFFICIAL opening of the Title & imating $1,000,000,000. These banks F. Harris, cashier, State Bank, GladMortgage Company, recently or are the Royal bank, with assets of $1,- brook; H. M. Walleser, vice president,
ganized to deal in the
First Security Bank and
real estate title insurance
Trust Co., Charles City;
business in the Chicago
E. R. Jackson, trust offi
district, was held recent
cer, Council Bluffs Sav
Vol. 25, No. 4
APRIL, 1930
ly in the company's of
ings Bank, C o u n c i l
fices, 323 Conway buildBluffs; James F. Hart,
ing.
trust officer, Iowa - Des
Moines National Bank &
The new company will
Last Minute N e w s .....................................
3
T r u s t Company, Des
act as the issuing agency
4
Legal Brain T easers.....................................
Moines; C. R. Gossett,
of the New York Title &
Building Profitable Business . . . . .
5
Mortgage Com pany, a
c a s h i e r , First State
6
Cartoons of the M o n th ...............................
$60,000,000 corporation,
Bank, Mapleton; C. L.
9
Bonds and Investments . . . . . . .
licensed to do business in
Fredericksen, cashier.
15
Insurance ....................................................
Illinois on July 17, 1929.
Live Stoick N ational
19
Nebraska N e w s ..........................................
The company will engage
Bank, S ioux City ,
23
News of the Omaha Stock Yards . . . .
exclusively in the busi
Wayne C. Carrell, vice
ness of title insurance
27
South Dakota N e w s .....................................
president, Emmet Coun
and will not make real
28
Colorado N e w s...............................................
ty State Bank, Estherestate loans or buy, sell
29
New Mexico N e w s .....................................
ville ; John Rider Wallis,
or act as guarantor of
30
Kansas N e w s ...............................................
cashier, Federal Bank &
mortgages in Illin o is.
Trust Company, Dubu
The company will intro
que ; W. G. C. Bagley,
duce a new feature in ti
president, Iowa Bankers
T h e C en tra l W estern B a n k e r , O m a h a
tle policies giving pro
A sso ciation, president
Published m onthly a t 410 A rth u r Bldg., O m aha, N ebraska
tection against failure of
S ubscription, 25 cents per copy; $2.00 per year.
First N ational Bank,
E n te re d as second-class m a tte r a t the O m aha postoffice.
co n sid era tio n and me
Mason City.
chanics and m a teria l
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Federal Reserve Bank of St. Louis
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In Th is Issue
Ulllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll'llllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllilllllllllllllllllllllli
tinimii.......in..... .
( C o n t i n u e d o n P a g e 18)
Central Western Banker, April, 1930
4
1.
2.
3.
4.
5.
The Question of Ownership
The Fortunate Third Party
The Cashier in the Dock
The Insolvent Bank
The Balanced Pass Book
6.
7.
8.
9.
10.
A Question of Knowledge
Who Should Sue?
The Question of Demand
Judge or Jury?
After Hours
Test Your Mind
on These Ten
LEGAL
A FORWARDING bank sent a
check to a receiving bank for col
lection and remittance.
“The said check and the proceeds
thereof belong to A,” the forwarding
bank wrote.
The receiving bank collected the
check, attempted to apply the proceeds
to a balance which the forwarding
bank owed to the receiving bank, but
the United States Supreme Court rul
ed that this could not be done in the
case reported in 1 Howard, 234.
The Fortunate Third Party
A South Dakota depositor opened
an account with the South Dakota
bank, and stipulated that the deposits
should be paid to X, to which the
bank agreed, and then refused to make
payment.
“You agreed with me to pay the
money to X, at the time the deposit
was made, the deposit is a sufficient
legal consideration for your agree
ment, and you are bound by it,” the
depositor maintained, and the South
Dakota Courts ruled in his favor in 2
S. D„ 242.
The Cashier in the Dock
A bank cashier was being prosecut
ed criminally for checking a deposit
when the bank was insolvent, the
State proved that the bank was insol
vent at the time the deposit was made,
and “rested” its case.
“The burden is on the cashier to
show that he did not know the bank
was insolvent,” the state contended.
“No — the state is bound to prove
that I had that knowledge,” the cash
ier’s lawver maintained, and the Iowa
courts ruled in his favor in a case re
ported in 130 Iowa, 678.
The Insolvent Bank
A bank was insolvent to the knowl
edge of its officers, a customer deliverCentral Western Banker, April, 1930
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Federal Reserve Bank of St. Louis
tea ser:
By T he Legal D epartm ent
ed a check to the bank for collection,
and the bank failed before the check
was collected.
Then the depositor and the receiver
both said, “The check belongs to me.”
And the Federal Courts, in 93 Fed
eral Reporter 572, ruled in favor of
the customer.
The Balanced Pass-Book
The depositor pushed his pass-book
through the wicket.
“I made a deposit of $79.33 day be
fore yesterday, which you didn’t cred
it,” the customer declared.
“The book has been balanced and
delivered to you, and it’s too late to
object,” the cashier told him.
And the Supreme Court of United
States, in 94 U. S., 343, ruled that
merely balancing the book did not pre
clude the customer from inquiring into
its correctness, and there are New
York and Pennsylvania rulings to the
same efifect.
A Question of Knowledge
A was dead, B was the administra
tor of the estate, C was the next of
kin. B deposited the estate funds in
a trust company, the trust company
deposited the money in a bank, and
the officer of the trust company who
made the deposit knew that the bank
was insolvent at the time.
Then C sued the trust company.
“The knowledge of your officer was
chargeable to you, and you are liable,”
C contended, and the Kentucky courts
decided in his favor in a case reported
in 66 S. W., 610.
Who Should Sue f
Back in 1879 an United States sta
tute provided that any bank officer
who received deposits for a bank
knowing that the bank was insolvent
or in failing circumstances would be
individually liable for the deposits so
received, and that the depositor could
sue the officer for the amount of his
deposits.
Suppose, however, that an officer
receives a deposit when the bank is
insolvent, then the bank fails, and an
assignee takes charge.
Who is the proper party to sue for
the deposit in this case, the depositor
or the assignee.
This query came before the Missou
ri courts in the case reported in 89
Mo., 51, where the courts decided in
favor of the depositor.
The Question of Demand
If A owes B a debt it will “outlaw”
in a certain number of years and B
cannot collect it by legal process.
If a bank owes a depositor on a de
posit account, and there is no state law
to the contrary, the debt does not be
gin to outlaw until the depositor de
mands it.
Now, if the depositor draws a check
against the account is that a legal
“demand” ?
The New York courts have answer
ed this query in the negative in 91 N.
Y., 106.
Judge or Jury?
If a customer leaves securities with
a bank for safe keeping, the bank re
ceives no compensation, and loses the
securities, the weight of authority is
that the bank is liable only if it has
been guilty of gross negligence in
handling the securities.
Now, if the customer sues the bank
for the value of the securities, who
determines whether there has been
such negligence — the judge or the
jury?
The United States Supreme Court
has passed on this point (in 137 U. S.,
604) where the court ruled that it was
a jury question.
( C o n t i n u e d o n P a g e 18 )
5
Buildine Profitable Busine.
Increased income should result
when a hanli sells its services at
the right price—Are you selling
yours?
By
President, Devlin & Bennett, Inc.
Chicago
(From address before Illinois Bankers
Association Bank Management
I T HAS been said wisely — “Every
institution is the lengthened shadow
Conference)
of a man or men.” If the management
is efficient then the effect of this man
agement will be profitable banks.
4—The next or fourth division is
J. J. Hill once said that it is cheaper
profiting on the information gained
to assemble a million dollars of capital
from the analysis of costs. A cost an
than to find the right man to manage
alysis without application is worth
it. An officer of a large life insurance
very little. A banker a short time ago
company is quoted — “Where a busi
said his bank had employed a firm of
ness earned 15 per cent it may be fig
specialists in cost analysis work to
ured 6 per cent has been earned by
make a thorough diagnosis of his
capital and 9 per cent by brains.” Thus
bank. A complete report was made.
management rises above capital in the
The officers and directors studied it
successful application of its principles.
very carefully. It was discussed for a
If those in charge of the large num
short time. The report was put into
W a l t e r E. D e v l i n
ber of banks that failed during the
the files. It has been there ever since.
past eight years had made a more care
That was about two years ago. No ac
ful study of the banking business and
1—
Financial operation. It deals withtion was taken in any way. Analysis
had cooperated a little more with their the conversion of the depositors’ funds of costs are of little value unless defi
fellowbanker, and had put into effect and invested capital into earning as nite action is taken on the information
practices that have proved successful sets.
uncovered.
in banking business, would there have
2—
The second division is operating The fifth division and a very impor
been as many bank failures—regard or the production of service. The han tant one is the development of profit
less of what the local conditions hap dling and recording of transactions. able business. Note, I say profitable
pened to be ?
Enabling the best possible service be- business.
.. . .
I he last two divisions,
Increased income should
taking action in the cor
come from selling your
rection of conditions un
services at the right price.
covered thru analysis and
Bank Management
research, and the develop
During the past 17 years,
“T here never w as a tim e in th e h istory of h an k in g w here
ment of profitable b u si
the average gross income
coop eration plays so im portant a part. Many o f th e forw ard
ness are p ractically the
of all national banks from
same. Both are d irec t
steps to be tak en m u st be on a coop erative basis. Lack o f
earning assets has remain
profit builders.
ed practically unchanged.
cooperation is co stin g banks th ou san ds upon th ou san ds o f d o l
Operating expenses, in
Correct Wrong Conditions
lars y ea rly .”
cluding interest paid, have
One unprofitable prac
increased almost 50 per
tice corrected will not be
111111111111111111111111111111 11111
cent. The result being a
sufficient to increase the
48 per cent decline in net
income of a bank to offset
profits. The 100 per cent
all increased operating ex
increase of the ratio between capital ing rendered to customers at the low penses. It will be the correction of
investment and deposits has enabled est cost, and yet have satisfied enthu many wrong conditions uncovered
some banks to continue to maintain a siastic employes.
thru careful study and cost analysis of
3—Analysis of costs. This is a very each department.
fair return. However, this cannot go
on indefinitely. If banks are to in important function of bank manage
Here are a few—■
crease their net profits, they must in ment. To know how much it costs you Checking Account Department.
1. Stop Loss Charge on low balance
crease their gross income without in to do business. If you do not know
creasing their operating expenses. your cost, how are you going to sell checking accounts.
2. Stop Loss Charge on large un
There are four main avenues opened : your service at a price to yield proper
1. To increase the net returns on earn profits? Who ever heard of a manu profitable check accounts.
3. Penalty for NSF checks.
ing assets. 2. Reduce expense and in facturer simply putting an arbitrary
on his product without knowing
4. Float and item charges.
terest paid. 3. Better operating or pro price
the cost? Yet that is what is being
5. Charge fo r im p rin tin g check
duction methods. 4. To increase the done in the banking business every books.
selling price of the services.
day. Cost analysis covers departments
6. In crease balances in p resen t
Bank management can be divided —production, and all accounts, includ checking accounts.
into five divisions—ing savings.
( C o n t i n u e d o n P a g e 13)
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Federal Reserve Bank of St. Louis
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Central W est cm Banker, A pril, 1930
6
How Much Should Your Bank
EARN I
T 'H E bank which I am to discuss
The interest paid item of $6,468 is
A falls in that class whose earning
very large for the size of the bank.
assets are $750,000 and less. From
They must have paid 4% interest on
figures compiled by the Illinois Bank
their savings which are half of the
ers Association, we find that on De
total deposits. The losses of $2,402
By
cember 31, 1928, there were 1219 of
or an average of $200 per month we
Cashier State Ratify of
these banks in Illinois. We believe
will agree shows poor management
Niantic, Illinois
the figures for 1929 will show a con
somewhere. The depreciation charge
siderable reduction in the number of (From address before Bank Manage of $322 is much too small; it would
these smaller banks due to failures ment Conference, Illin o is Bankers seem the building equipment should
and the many consolidations during
be depreciated about 5%. In this case
Association)
the year. The Secretary’s office has
the charge would amount to $1,750
furnished us with a set-up of the assets and liabilities
and would change the picture considerably. The miscel
and the earnings and expenses of the average bank. We
laneous item of $2,600 seems very large unless they had
attorney fees or something not generally included. Noth
ing has been set aside for reserves or added to surplus,
and only $337 remains to be added to the undivided
Cash ...................................................... $ 47,850
profits account. Banking authorities suggest that four
Securities .............................................. 58,000
or five per cent of the net earnings be left in the business
Loans and Discounts............................. 239,949
each year.
Building ................................................ 35,000
Miscellaneous.........................................
2,191
The average bank paid a dividend of $2,300 to its
stockholders, which is 3.67% interest on the invested
$382,990
capital. The ratio of net profits to invested capital is
Liabilities
4.22%. I asked a former supervising officer of banks in
Time Deposits......................................... $152,806
this state, How much should a bank earn? He said, a
Demand Deposits................................... 152,356
bank should earn a lot more than the average bank does.
Capital, Surplus and Undivided Profits 62,828
If the stockholders in all the smaller banks in the State
Bills payable, rediscount....................... 15,000
of Illinois put their invested capital into Government
Bonds, they would make more money than they make
$382,990
now on their bank stock and still be free of all the worry
and grief, responsibility and the double liability. These
We are surprised to know that the invested capital of
figures bear out that statement. The Government bonds
these 1219 banks is as much as $62,828; that the deposits
would yield almost 4.25; the average earnings of the
total only $302,000 of which half are demand and half
banks are 4.22%.
are time. The ideal situation for maximum earnings
My belief is the trouble with the earnings of the
would show invested capital to deposits in proportion of
about one to eight or ten. The deposits then should show
banks, the small banks is 1st: That the directors, in many
cases fail to direct. The active management and respon
about double the amount we find here. The reduction in
sibility are left entirely with the officers. 2nd. That the
the number of banks in this class during 1929 should
show a more favorable ratio. The building and fixtures
stock is too much scattered for anyone to take much in
account is much larger than would seem to be required
terest in the problems of the bank. 3rd and of greatest
for banks of this size ; this large investment cuts down
import is the underpayment of the officers of many of
the earnings very materially.
these small banks, who are wholly responsible for their
successful operation. While the average shows fairly
Average Income and Expense Account
reasonable salaries paid, many of the small banks do not
Income
come up to this average. The officers are compelled to
Bank Balances........................................ $ 957
write insurance, deal in real estate and do a thousand
Securities ................................................ 3,480
things on the side to make enough for a livelihood for
Loans and Discounts............................... 13,569
themselves and their families. This division of their
Com. on R. E. Loans............................... 1,566
time, thought and energy is a detriment to the proper
Miscellaneous ......................................... 1,305
management of the bank. Many of the loans taken in
the settlement of these transactions gradually creep into
$20,877
the bank, and are usually found to be slow or frozen
Expense
paper.
Interest Paid............................................ $ 6,468
I believe that a bank should earn enough to give its
Salaries, Officers 1................................... 2,500
officers
an increase in pay regularly. The bank should
Salaries, Officers 1................................... 1,500
earn enough that the officers receiving $2,000.00 per year,
Salaries, Clark 1...................................... 1,200
should not have to be working for the same salary ten
Taxes ...................................................... 1,244
years from now. Many of the officers have not received
Miscellaneous ......................................... 2,600
any advance in the last five or ten years. With many
Losses ...................................................... 2,402
of
them responsibility increases, demand on their time
Depreciation ...........................................
322
increases, their knowledge, efficiency and experience
Dividends ................................................ 2,304
should increase, but their salary remains stationary. I
Added to Undivided Profits...................
337
feel the period of service in a small bank should mean
something
in added salary each year.
$20,877
Central W est cm Banker, April, 1930
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
Ccuirai IV e s ! e- u Banker, April, 1930
Guaranteed Bonds
— fill every Investment Need
S u r e t y G u a r a n t e e d B o n d s are 6% Real
Estate Bonds th a t bear the joint and several
g u aran tee of the Federal Surety Com pany and
the N ew Jersey Fidelity & Plate Glass Insurance
Company.
T h e ir safety is assured beyond question by
the directly endorsed joint and several guarantee
of the two surety companies ap p earin g on e a c h
bond.
T h e y combine safety with liberal yield, and
therefore should be num bered am o n g the invest
ments of banks, institutions, trust estates and in
dividuals.
In case of emergency, they have a higher
m arket rating than any real estate bond now on
the market, by reason of this binding guarantee.
Security dealers and bankers can safely re
commend t h e s e b o n d s to their most exacting
clients, and will find them an attractive, profitable
and worry-proof addition to their lists of offerings.
O u r new booklet, “ A Part Of All You Earn
Is Yours T o Keep,” describes the care exercised
in underw riting this type of investment, and will
be sent free upon request.
PROVIDENT STATE SECURITIES COMPANY
134 North LaSalle St.
Chicago, 111.
Central Western Banker, April, 1930
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Federal Reserve Bank of St. Louis
9
A N ANALYTI^ CAL survey of
the results of oper
atio n s of fifty-one
investment trusts or
investment compan
ies w ith to ta l re
sources of about
$1,400,000,000 r e
veals a generally
sound investm en t
ability. A group of
sixteen old trusts earned nearly 14 per
cent on the average resources during
the last three years. A group of thirtyfive new trusts (formed since Novem
ber 1928) reported a decline in the
value of their security portfolios of
g.49 per cent from cost, whereas the
stock market decline during the same
period was 21.7 per cent. _ .
Although the reports of individual
companies, whether they have been m
operation for several years or are one
of the new investment companies, fur
nish results which do not compare fa
vorably with the stock maiket decline
or the earnings on the average re
sources are not as high as those of the
group, on the average, the lesults of
operations were sa tisfa c to ry . The
group of old trusts had an advantage,
as many of their securities were pur
chased several years ago at low fig
ures and in spite of the fact that they
were not sold prior to the stock mar
ket decline, the prices of these securi
ties after the October-November de
bacle was above cost.
The results of the group of new
companies were good considering the
difficulties under which they labored.
In the first place, they were formed at
a time of high levels in the stock mar
ket and could not make the advan
tageous purchases possible to the old
companies. In the second place, the
general enthusiasm for common stocks
at the time of their formation and
during the early months of their oper
ation required considerable strength
of management foresight in not pur
chasing common stocks. A few trusts
did make large purchases, but on the
whole the results of this group indi
cate sound management ability.
General Expectation
The general expectation is that an
investment trust or investment com
pany will report earnings of 10 per
cent on the average resources over a
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Federal Reserve Bank of St. Louis
y ears was higher
than the classic fig
ure of 10 per cent.
One of the smaller
companies reported
a decline in earn
ings d uring th e
three years and the
average for this
com pany for the
three years w a s
8.53 per cent, and a
holding-investment company reported
an average of 8.6 per cent for the
three years.
The variance in the reports is indi
cated by the results of Trusts B, C
and I) (see accompanying individual
charts). Trust B reported a continued
increase in earnings on the average
resources, whereas Trust C reported
high earnings in 1928, due to large
profits from sale of securities, and in
1929 only a few such sales were made
and earnings consequently declined.
Trust D, a holding-investment com
pany. with the portfolio continued
practically intact from year to year,
reported a continuous decline in earn
ings from 11.5 per cent in 1927 to 6.9
per cent in 1929. The low earnings are
due to the lack of capital profits which
the other trusts include in their in
come accounts.
W hat Has Happened
to
Investm ent Trusts?
By W alter N* D urst
Steelman & B ir in s
New York
period of years. This 10 per cent is
higher than can be achieved by all but
a few investors, over a period of time,
and is multiplied by the ratio of the
senior capital of the trust to the com
mon stock capital. The earnings on the
average resources may be increased
one and one-half, two or three times
by the amount of trading on the equi
ty, that is, the ratio of debenture and
preferred stock capital to the amount
of common equity. However, without
considering this question of multipli
cation of earnings for the common,
the survey showed that earnings on
the average resources were on the av
erage nearly 14 per cent for the last
three years.
The sixteen trusts included in the
analysis which have been in operation
for three years or longer, have total
resources of $560,000,000. These six
teen trusts are the principal ones that
have been in operation for this length
of time. Ten of the sixteen are larger
trusts with resources of from $10,000,000 to $50,000,000 each, and the other
six each have from $1,000,000 to $8,000,000 in resources. The average size
is about $35,000,000.
The results of the survey of these
older trusts were as follows: Earnings
on the average resources of the group,
as closely as can be computed, were
11.5 per cent in 1927, 14.6 per cent in
1928, and 15.2 per cent in 1929. The
results of the individual companies
varied rather widely, although they
were generally on an ascending scale.
The highest earnings were reported
by Trust A, namely, of 9.90 per cent
in 1927, 21.5 per cent in 1928, and 27
per cent in 1929. With but two excep
tions, the average during the three
Market Appreciation
At the end of 1929, six of the six
teen companies reported an apprecia
tion of market values over cost of se
curities, one was about even, and nine
reported a depreciation. However, the
appreciation of the six trusts was ap
proximately $38,000,000, whereas the
depreciation of the nine trusts was less
than $11,000,000. Net appreciation of
the group was $27,000,000. This net
appreciation amounts to nearly 5 per
cent for the entire group.
All of the four companies, Trusts
A, B, C, and D, the earnings opera
tions of which are graphically display
ed in the accompanying charts, report
ed an appreciation of market value
over cost. In the case of Trust A, it
was 34.6 per cent; Trust B, 20 per
cent; Trust C, 24 per cent; and Trust
D (holding-investment company), 6.7
per cent.
The investment trust movement
might paraphrase a certain famous
statement: “These are my jewels.”
Central Western Banker, April, 1930
10
These sixteen trusts have been in op
eration for three years or longer and,
on the average, have reported earn
ings of about 14 per cent, or 40 per
cent above the classical concept of 10
per cent, and after the severe market
decline of last fall had an average ap
preciation of market value over cost
of about 5 per cent. The varying re
sults indicated in the above summary
and by the charts demonstrate forcibly
that individual analysis is necessary in
the case of investment companies, al
though they may have been in opera
tion for several years.
Thirty-five New Trusts
The survey of the thirty-five new
investment companies with resources
of about $850,000,000, all these comLpanies having been formed or publiclyy
announced since November, 1928, ins dicates the desirabilitv of age in con
sidering the securities of an invest•ment trust. However, on the average,
the results are favorable. The declinee
of their security portfolios is consider
ably less than the corresponding mar
ket decline.
11 would be possible to make a veryy
interesting survey of the price actiona
of the stocks of these new companies..
The prices of the trust stocks advanc
ed far above liquidating value in thee
summer of 1929, and the market slumpp
reduced them to below liquidating orr
net asset value. A number are stillI
F ACTS
or Factors
In buying* a security in the hope of g'aining' appre
ciation profits the purchaser encounters a host of
factors. A thousand and one considerations enter
into his calculations, all boiled in the crucible of prob
ability. And when the sum is computed finally, a new
factor suddenly bursts upon him to render his work
useless.
But there is another type of investor who knows
no factors, but only one fact — income. A purchase
made from a reliable investment banker who special
izes in securities offering assured income renders
further consideration unnecessary. Year after year,
this investor will continue to receive a growing' profit
— the only certain profit — income.
Our current investment list offers such opportuni
ties to eliminate the thousand factors which make for
uncertainty and to substitute for them the Fact —
steady income.
SMITH, LANDER YOU & CO
210 Farnam Building,
O m aha, N ebraska
Phone Ja. 5 0 6 5
Central Western Banker, April, 1930
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Federal Reserve Bank of St. Louis
selling at a discount from the net asset
value per share based on market
prices.
However, while the problem of
market action and prices is a very important one to the investor and to the
holder of investment trust securities,
the over-done advance and decline is
a study of the general market move
ment, whereas this analysis is a survey of the results of investment management. Market prices of investment
trust securities and investment man
agement are divorced in an unusual
period such as that of the last year
although over the long term they are
inextricably bound to each other.—
From Bankers Magazine.
Deposit Accounts
In considering the factors underly
ing bank reserves, Dr. Paul M. At
kins, economist for Ames, Emerich
& Co., discusses in the company’s
current “Bank Brief” the distribu
tion of the size of deposit accounts.
“Analysis of many banks shows that,
in general, for a given amount of
either demand or time deposits, the
larger the number of the accounts
the more stable is the demand made
upon the reserves,” says Dr. Atkins.
“A large number of small accounts
generally means a correspondingly
large group of depositors. Barring
relatively exceptional cases, the needs
and requirements of all of the people
are seldom the same at the same time.
On the other hand, a small number of
large accounts is likely to cause mark
ed fluctuations in the volume of de
posits. Companies will, at times, build
up a large amount of deposits during
a period when collections are heavy
only to draw them down heavily and,
sometimes, quite suddenly.
“Corporations have been known to
make large time deposits in country
banks because the rate of interest paid
by these institutions is frequently
higher than that offered by city banks.
When these funds are wanted they
are withdrawn either with no notice,
if the bank will permit it, or with no
more than the legal notification.
“It will be found in most cases that
a fairly even distribution of deposit
accounts by size will be the most ad
vantageous combination for a bank to
possess. The large number of small
ones will give stability to the ebb and
flow of funds. The small number of
large ones will add to the earning
power of the bank. It is very essential
that a bank analyze the distribution of
its deposit accounts by size and ascer
tain what the facts actually are, for
the situation as revealed by this an
alysis is an important factor in deter
mining the size of the bank reserves,
both primary and secondary.”
11
A FIXED INVESTMENT TRUST
u n d erlyin g w h ich are stock s o f th e 2 8 com panies liste d below , plu s a Cash
R eserve F u n d (in terest on w h ich is paid to sh areh old ers) d esign ed to in
sure a m in im u m a n n u al d istrib u tion o f 70c per C orporate T rust Share.
No. of
U T IL IT IE S AND
M oody
S h ares
Q U A S I-U T IL IT IE S
R ating
4 A m erican T elephone & T elegraph
Aa
4 C onsolidated Gas o f N ew Y ork
A
4 G eneral E lectric
Aa
4 W estinghouse E lectric
A
4 W este rn U n ion T elegraph
A
IN D U S T R IA L S
4 A m erican R ad iato r & S ta n d a rd
S a n ita ry
4 A m erican Tobacco (C lass
B)
4 du P o n t
4 E astm an K odak
4 In g ersoll-R and
4 In te rn a tio n a l H a rv e ste r
4 N ational B iscuit
4 O tis E lev ato r
4 U n ite d F r u it
4 U n ite d S tates S teel
4 W ool w orth
B aa
A
A
A
A
A
Aa
A
A
A
A
O utstanding Features
No. of
S hares
M oody
R ating
R A IL R O A D S
Aa
A
Aa
A
A
A
A
4
4
4
4
4
4
4
A tchison, Topeka and S a n ta F e
Illinois C entral
Louisville & N ashville
New Y ork C en tral
P enn sy lv an ia R ailroad
S o u th e rn Pacific
U nion Pacific
4
4
4
4
4
S ta n d a rd Oil C om pany of C alifornia
A
S ta n d a rd Oil C om pany of In d ia n a
Aa
S ta n d a rd Oil C om pany (N ew Jerse y ) A aa
S ta n d a rd Oil Com pany of N ew Y ork A a
T exas C orporation
A
O IL S
and
Earnings
Record
1. Sem i-annual distributions are paid on June 30th and Decem ber 31st against
coupons attached to certificate.
2. Cash distributions fo r 1929 were as follow s:
J u n e 30, 1929
(fo r 6 mos.)
Regular coupon rate..................... ..............$8.35
EXTRA DISTRIBUTION......
Dec. 31, 1929
(fo r 6 mos.)
$0.35
H \
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Federal Reserve Bank of St. Louis
C orporate T rust S hares
CO
GUARANTEED BONDS
CANNOT “FREEZE”
By J. K e n n e t h E d l i n
President of Provident State
Securities Co., Chicago
I N past months, a number of invest^ ment houses have suffered severe
losses, and attention has been called
to the causes to which they attributed
their reverses, one of the principal
reasons being depression in the bond
market and consequent “freezing” of
their assets.
It can and often does happen that
a financial institution, otherwise sol
vent, is confronted with the problem
of converting its resources into cash
on short notices, and where this can
not be readily accomplished, disaster
is inevitable.
Houses underwriting unguaranteed
real estate bonds have been among
the sufferers from this condition with
the result that bankers, as well as in
dividual investors, are asking them
selves the question, “Is this a safe
form of investment?”
Many of the failures can be attrib
uted to four distinct factors: (1) De
pression in the bond market with con
sequent “freezing” of assets; (2)
over-financing, resulting in heavy car
rying charges; (3) rental schedules
based on abnormal conditions; and
(4) carelessness on the part of the
house of issue with regard to the busi
ness experience and ability of the
mortgagor or manager of the proper
tyThese things cannot happen in the
case of Guaranteed Real Estate Bonds
for the reason that the surety compan
ies who place their guaranty upon a
good issue are performing this serv
ice for a consideration, their fee be
ing paid them for placing their guar
anty of payment of principal and inter
est directly on the bonds. Therefore,
they are assuming a heavy obligation
which, in their own interests, they
must carefully protect at all times.
The relatively small premium which
they charge for this service does not
permit them to assume hazardous
risks, and they cannot afford to suffer
a loss that would offset the premium
collected for their guaranty upon the
bonds.
Therefore, they take unusual pre
caution against the possibility of loss,
and adopt certain stringent regula
tions as a condition of their guaranty,
which regulations must be strictly
lived up to on the part of the institu
tion underwriting the bonds.
In the case of the ordinary unguar
anteed bond, the whole question of
setting up the issue depends on the
Total distribution......................... ..............$ 1 . 1 6 /
T otal
for 1929
$ 0 .7 8
.45
1.26 y !
$ 0 .8 0
$ 1 .9 6 /2
3. 17-year average annual distribution (1913 to 1929 inclusive) has been $1.53
per share, equal to 14.8 per cent retu rn on the annual average price of the
shares during this 17-year period (assum ing existence of the shares during
this p erio d ).
4. M oody’s ratin g “A .”
5. Issued by T H E E Q U IT A B L E T R U S T C O M PA N Y O F N E W Y O R K ,
T R U S T E E , and countersigned by A m erican D epositor Corporation, D e
positor.
6. D enom inations:
10, 25, 50, 100, 250, 500, 1,000, 2,000 and 10,000 shares.
7. R ights are issued sem i-annually perm itting reinvestm ent of p art of distribu
tions.
S m it h B urris & C o m p a n y
Syndicate M anagers— Central United S tates
120 S o u th La Salle S tre e t, C H IC A G O
L L O Y D P H IL L IP S & C O M P A N Y
Wholesale Representatives for Smith, Burris & Co.
Union National Bank Bldg., F R E M O N T , NEB.
C orporate T ru st Sliares are d istrib u ted a t reta il by over 2 0 0 banks and
in v estm en t h o u ses in principal cities.
Central Western Banker, April, 1930
12
underwriter and the mortgagor, who,
through mutual concessions and by
agreement decide on the amount of
the loan, interest rate, trusteeship, and
other features of the loan; whereas in
the case of a Guaranteed Bond, this
procedure is secondary to the strict
and searching investigations made by
the surety companies with reference
to location, actual values, the appoint
ment of an independent corporate
trustee2 and the careful investigation
of the financial standing and business
ability of the man who is borrowing
the money with which to build.
A Safe Investment Form
Real estate is and always will be
one of the safest forms of investment
known, and where the surety com
panies who guarantee real estate bonds
adhere to conservative practices and
careful financing, the possibility of
loss is reduced to the minimum.
There are certain definite formulas
by which the value of properties can
be maintained within a remarkable de
gree of accuracy, and if bankers as
well as individuals will adhere to
these rules they will at all times find a
guaranteed bond to be well within
the limits of safety as prescribed by
conservative underwriting and invest
ment banking.
So far as the surety companies are
concerned, the fact that they are un
der the supervision of the United
States Treasury Department as well
as the states in which they are licens
ed to transact business is an assurance
that the likelihood of their resources
In d iv id u a l a n d
In st it u t io n a l I n v esto r s
fo r
Every investment account, whether made up entirely of
fixed interest-bearing securities or including a proportion
of equity issues, should have a foundation of high-grade
bonds. Government, State, Municipal and the best Cor
poration bonds are the recognized media for the conserva
tion of capital, and are just as suitable investments for
individuals as for savings banks, insurance companies and
other institutions.
The National City Company provides conveniently located
investment offices in the following cities where recommen
dations for the employment of current surplus funds will
gladly be made:
A lbany, N . Y
A tla n ta , G a.
A tla n tic C ity , N . J.
B a ltim o re , Aid.
B irm in g h am , Ala.
B oston, Alass.
B uffalo, N . Y.
C hicago, 111.
C in cin n a ti, Ohio
C leveland, O hio
D allas, T exas
D a v e n p o rt, Iow a
D e n v er, Colo.
D e tro it, Alich.
H a rtfo rd , C onn.
H o u sto n , T exas
Indianapolis, In d .
K ansas C ity , Alo.
Los A ngeles, Calif.
L ouisville, K y .
A lem phis, T enn.
A liam i, F la.
A lilw aukee, W is.
A linneapolis, A linn.
N ew ark, N . J.
N ew O rleans, L a.
O ak lan d , C alif.
O m aha, N eb.
P a sa d e n a, C alif.
P hiladelphia, P a .
P itts b u rg h , P a .
P o rtla n d , Ale.
P o rtla n d , Ore.
P rovidence, R. I.
R ochester, N . Y.
St. L ouis, Alo.
St. P a u l, Alinn.
S an D iego, Calif.
S anF rancisco,C alif.
S cran to n , P a.
S eattle, W ash.
Spokane, W ash.
T acom a, W ash.
T oledo, O hio
W ashington, D . C.
W ilkes-B arre, P a.
A lontreal, C a n ad a
T oronto, C an ad a
T h e N ational C ity Com pany
Flational City B a n \ Building, 7\[ew Yorfy
IN V E S T A 1 E N T
Central Western Banker, April, 1930
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Federal Reserve Bank of St. Louis
SECU RITIES
becoming impaired is too remote to
merit consideration.
The supervision of the surety com
panies by various governmental agen
cies is an added safeguard to the in
vestor, who can at all times have the
satisfaction of knowing that the com
panies who guarantee his bonds are at
all times watching his interests in or
der to protect their own and, in turn,
are under the watchful eye of various
insurance departments, whose sole
function it is to protect the interests
of the policyholders of the companies.
Therefore, the protection afforded
the bondholder does not necessarily
consist exclusively of the closed first
mortgage on the property or the in
come from the property, but, in the
final analysis, on the continued finan
cial health and good repute of the sur
ety companies, which is reasonably as
sured by reason of the close supervi
sion above referred to.
Thus protected, safeguarded and
insured, a Guaranteed Bond cannot
“freeze,” and for this reason has a
higher collateral value at banks, is
more readily marketable in case of ne
cessity, is distributed over a wider
range and to a larger number of indi
vidual investors than other types of
real estate bonds, and is particularly
attractive to institutions who must not
lose, and to individual investors who
cannot afford to lose.
Sees Era of Prosperity
Frozen loans should be thawed out
by or before the middle of March and
this should bring to light a large ag
gregate of hidden buying power, Paul
Clay, economist of the United States
Shares Corporation stated in an ad
dress before the New York Credit
Men’s Association. Mr. Clay main
tained that the credit situation should
improve greatly in March and, point
ing out that the bond market is now
on an upward trend, declared that any
liquidation remaining in the stock
market will be neither large nor in
tense and that a new era of prosperity
should begin in August.
Discussing the immediate future,
Mr. Clay said that three converging
lines of evidence indicate that the
trade depression is likely to continue
into July or thereabouts, even though
approximately the lowest level has al
ready been reached. He contended also
that the rapid boom of 1922 and 1929
and the easy profit era are things of
the past; and that for a long period
of years our prosperity and profits
will have to be earned. The nearby
outlook he believes more or less as
sured by the habitual occurrence of
“secondary booms” which are minor
booms occurring after and because of
13
major booms, due largely to public of bank service entitles banks to an
feeling that boom conditions are regu investment return at least on a par
lar and normal circumstances. These with industrial earning, yet General
usually last a year or more with or Motors Corporation last year with %.
without powerful economic causes and of the invested capital earned more
one of them should soon begin, in his money than all national banks combin
opinion.
ed.
An analysis of costs without action
In his last address before the asso
ciation, delivered October 15, 1928, is of little or no value. After the an
Mr. Clay predicted a bear market af alysis is made the next step is to bring
ter the first quarter of 1929, hence about the proper action. This can be
members displayed more than ordin- done through salesmanship and coop
eration.
What Salesmanship Docs
Salesmanship is persuading the cus
tomer to accept your viewpoint in the
sale and purchase of goods or services.
The study of the principles underlying
salesmanship is a study of the princi
WILL
BE
OUR
MAILED
ples underlying the influencing of hu
man behavior.
In the old days it used to be a gen
erally accepted theory that salesmen
were born, not made. Today sales or
ganizations have definitely discarded
the old idea. They no longer only equip
their salesmen with information about
the company they are to represent and
the products or service they are to
sell, but also give them information on
the principles of salesmanship and the
application of these principles in sell
ing their particular product or service.
The object of the training is to
show the salesmen effective methods
used in presenting a service or com
modity which he feels will be of value
to a client. There should be no more
reason for opposition to a plan of
OFFERING
1 ,1 S T
REGULARLY UPON
REQUEST
P a u l C lay
ary interest in his forecasts, as well as
in his comment on the last year which
was to the effect that 1929 was re
markable, on the one hand because
there was probably never a year in
which so many expected events hap
pened in credits, finance and industry
and on the other hand because these
expected events took place in unex
pected ways as never before.
enjoy the protective background of highly
Building Profitable Business
liquid assets, with credit factors widely diver
G M A C obligations
( C o n t i n u e d f r o m P a g e 5)
Savings Account Department.
7. Correct method of computing in
terest.
8. Pay no interest on Christmas
clubs, tax clubs, etc.
9. Pay no interest on small balances.
10. Reduction of savings interest
rates.
11. Build balances in present ac
counts.
Miscellaneous.
12. Fair charge for cashier’s checks,
drafts, etc.
13. Safekeeping of securities.
14. Purchase of securities.
15. Telegraphic transfer of funds.
16. Service charge on small loans.
17. Amortization of small loans.
18. Penalty on overdue notes.
19. Eliminate overdrafts.
Putting any one of these into effect
will not increase profits in a big way.
But the combination of them all will
work wonders. No well informed
banker needs reminding that bankprofits are not what they should be.
He knows it and has known it for sev
eral years. The indispensable nature
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Federal Reserve Bank of St. Louis
sified in region and enterprise. Long regarded as
a national standard for short term investment,
they have been purchased by thousands of banks,
institutions and individuals the country over.
available in convenient maturities and
denominations at current discount rates
G en era l M otors
A c c e p t a n c e C o r p o r a t io n
O F F I C E S
Executive Office -
CAPITAL,
IN
P R I N C I P A L
Broadw ay at
57t h
CITI ES
St r e e t
- Hew Tor\ City
SURPLUS AND
UNDIVIDED
OVER
$66,000,000
PROFITS
Central Western Banker, April, 193Q
14
teaching your employes to become
salesmen than the plan of teaching
prospective lawyers how to present
cases in court.
A salesman is one who creates val
ues in the customer’s mind. Know
your services and be convinced of
their value. Learn how to present
your services so as to compete success
fully for your portion of your custo
mer’s dollar—Competition is keen.
When one of your customers gets
hold of a dollar, thousands of manu
facturers spending millions of dollars
in advertising and selling, are literally
screaming to secure a portion of that
dollar. Real estate dealers, mortgage
houses, building and loan associations,
bond houses, are advertising and using
intensive sales methods, employing ex
cellent salesmen all with the purpose
of selling their investments. Manufac
turers of radios, automobiles, pianos,
and other luxuries are spending mil
lions to keep their factories busy. As
a result there is little or nothing left
for the depositor to put into the bank.
Why? Because you have not convinc
ed him of the values that he would re
ceive. Most banks do not use the new
sales and advertising methods to com
pete with other lines of products and
investments. Use scientific selling me
thods.
\
A
©
®
h
The majority of bankers are not
thoroughly sold on the value of the
service they are rendering. The time
has come when the public should be
better informed. It is a big job and
cannot be done quickly. But there is
one thing certain—working with tried
and tested selling principles, there is
no question but what the banker can
meet successfully present day compe
tition One contributing factor reduc
ing net profits of banks today is they
are serving more customers m rela
tion to deposits than ever before in
the history of banking.
Men or women who know how to
sell and particularly how to sell ban v
services are in demand today — and
can about write their own ticket. _
There never was a time m the ms
tory of banking where cooperation
played so important a part. Many of
the forward steps to be taken must
be on a cooperative basis. Lack of co
operation is costing banks thousands
upon thousands of dollars yeaily. _
Many times we have seen the in
stallation of stop loss charges on low
balance checking accounts held up m' definitely because of lack of coopera
tion. For example, in a town of 6,UUU
people, there are three banks. Consid
erable effort was made to interest all
the banks in the stop loss charge. One
bank refused to cooperate. It was the
same old story—they wouldn’t benefit
r
In v e s tm e n t
and
(Conservative (B ond I s s u e s
d
i
i
i
i
,
L m m
^
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a
3 1 8 S O U T H N IN E TE E N TH S T R E E T
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®
Central Western Banker, April, 1930
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
©
*
_ — A
r
iiT o rO
The second bank refused to join be
cause of the first. The third bank, af
( ter doing everything they could to ob
tain cooperation, decided to go it
alone. They did. They put on an edu
cational sales and advertising cam
paign. They convinced their custom
ers their action was justified. Here are
the results. When the campaign start
ed. they had 800 accounts with less
than $50 average daily balance. Total
deposits in this group of $22,921.50 or
an average daily balance of $28 per
account. After part of the preliminary
educational work had been done and
the service charge announcement had
been made, they had lost only 30 ac
counts, leaving 770. But instead of
having $22,000 deposits in this group,
the balance amounted to over $36,000
or an average of $47 per account. In
August, after the stop loss charge had
been made, they had 670 accounts,
with $46.000 or an average of $69
apiece. The total deposits in the 130
accounts closed amounted to $1.134.00
or an average of $10.27 each. In ad
dition to this they are collecting a very
handsome revenue monthly from the
stop loss charge, and say—“We are
thoroughly sold on the proposition and
feel we should have instituted this
charge sooner than we did.”
15
Insurance
W know
EAthat
LL
w as a good
thing to have,
d u r i n g the
and the more
past few years
'
you had the
when the stock market was soaring—
better off you were, we thought we
when your bootblack was as ready to
had com pleted our job when we
give you tips on the market as your
had sold a man a certain amount for
broker—a good many sizable estates
the protection of his family. Now,
were created through profitable but
however, when we look on life insur
speculative investments. We know,
By
ance as a means of replacing a man’s
too, that a good deal of life insurance
economic value to his family, we real
has been bought during the same per
ize that our job has just begun. In
iod, but, at the same time, we have General Agent, Philadelphia, Penn other words, when we look on life in
M utual Life Insurance Co.
had to admit that it has often been im
surance as a way of providing funds
possible to show to people who needed
to pay off mortgages, to finance the
it most the value of life insurance
college education of a man’s children,
protection.
opportunity to work together in the or to give the family the income they
Theoretically, of course, it should creation and conservation of estates?
will need, we must arrange some way
have been easy for a life insurance
I think it is a highly favorable com of carrying out these plans.
salesman to go into a man’s office and mentary on the progress made in life
We have, of course, pretty well
to point out to him why he ought to insurance company and trust company buried the argument that insurance
have life insurance to pro
trusts are necessary be
tect his family when his
cause 95 per cent of all
estate consisted of specu
life insurance estates are
lative investments. How
d issip ated within seven
ever, in a g reat many
“W hen w e look on life insurance as a m eans o f rep lacin g
years. Our common sense
cases the man who saw
a m an ’s econom ic v a lu e to h is fa m ily w e realize th at our job is
tells us that life insurance
his profits mounting daily
ju st begun. In o th er w ords, w hen w e look on life in su ran ce as a
proceeds are dissipated
didn’t want to look at the
w ay o f provid in g fu n d s to pay off m ortgages, to finance th e co l
most often, not because
picture of the part which
le g e ed u cation o f a m a n ’s children, or to g iv e th e fa m ily the
the beneficiary lost the
life insurance would play
incom e th ey w ill need, w e m u st arrange som e w ay o f carrying
principal by unwise in
in case something happen
ou t th e se p la n s !”
vestment, but because
ed to his securities. Today,
there wasn’t enough in
however, th a t something
surance in the first place
has happened, and in most
and she had to use the
instances, the only meth
principal or starve. As a
od by which a man can make sure of where we must discuss questions such matter of fact, a careful survey of
recreating immediately the estate he as whether this type of cooperation is about 750 claims paid by one company,
wants his family to have is through possible, practical, and desirable. The involving about ten millions of insur
life insurance. Moreover, in a good fact that the amount of life insurance
many instances, his only method of protected by trust agreements has ance, showed that the amount lost was
making sure that his financial objec passed the two and a half million only about 1.3 per cent of the total in
tives for his family will be carried out mark, of which $1,200,000,000 was surance involved. Nevertheless, we all
know of estates which have been need
is through the life insurance trust.
placed in trust during 1929, an in lessly dissipated, and know, too, that
crease of 71 per cent over 1928, is suf it isn’t always possible to foresee all
A New Picture
ficient answer to these questions. Our the contingencies that will arise. In
chief consideration today is how to
Here is the present-day financial make life insurance and trust com this situation trust company adminis
picture: The violent drop in market pany cooperation most effective in the tration substitutes professional work
for amateur performance, and elim
values has destroyed or diminished a creation and conservation of estates.
inates
not only the danger of financial
great many paper estates. By the pay
The other night I was coming out loss but a great many financial worries
ment of a relatively small amount,
the man whose estate has been de of the theatre after seeing a drama of as well.
Our Present Job
stroyed can re-create this estate imme married life, and a friend of mine re
You and I both appreciate the im
diately through life insurance. He marked that “when you used to go to
realizes only too well the pitfalls into the theatre, you expected the play to portant contribution which life insur
which even the most experienced in end when the plot brought you to the ance can make toward the creation of
vestor can fall, and, therefore, the fin point where apparently the man and estates, especially in the present finan
ancial dangers which may be in the the girl were going to live happily ever cial situation. It represents the only
path of his family if they are entrust after. But now, that’s where you ex method by which a person can create
ed with the investment of the funds. pect the play to begin.”
immediately the estate he wishes to
Have the life insurance companies and
11 seems to me that there has been a leave his family and then save it—ra
the trust companies ever had a greater bar shift in our attitude about life in ther than leaving his family just what
cooperation to realize that in a few surance. When life insurance was sold he has been able to save. You and I
years we have passed beyond the stage merely on the basis that life insurance both appreciate, also, the important
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Creating and Conservin
ESTATES
.
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Central Western Banker, April, 1930
16
contribution the trust companies can wants a time table — a statement of
make in the conservation of these es what the railroad will do in helping
tates, for, where discretionary power him to arrive at a certain destination.
is necessary in carrying out the insur Likewise, most of the information
ed’s plans, the life insurance trust of which the public gets about life insur
fers the only way by which he can ance companies and trust companies is
make sure that these plans will he ful about their financial condition and
filled. But we must realize, too, that their plans for development. But the
from the marketing point of view, we man who is creating an estate wants
sell, not what we know we have, hut concrete information, not only about
what the public thinks we have. Our what these institutions can do, but
present job, therefore, is to make the what they actually will do in enabling
public aware of what the life insur him and his family to arrive at a cer
ance companies can do in the conser tain financial destination.
vation of estates.
A New Development
As far as printed salesmanship is
Life
insurance
and trust company
concerned, the trust companies have
done more than the life insurance cooperation, on a large scale, in the
companies in making the public trust- creation and conservation of estates is
minded—partly because the life insur a relatively new development in the
ance companies have two tools in their financial world. But the public can
kit for the conservation of estates, the measure the effectiveness of our coop
settlement options and the life insur eration only by actual results — by
ance trust, and it is a little difficult to what we have done and are doing in
write advertising copy showing the the way of helping people to accumu
cases where one should he used and late estates for their families and in
safeguarding these estates so that the
where the other.
The information which the public funds will meet the family’s financial
gets about railroads from the newspa needs.
The soundness of the life insurance
pers is chiefly about their financial
condition and about their plans for fu method of creating estates, if proof
ture development. But the man who is were necessary, was conclusively dem
going to use a railroad in traveling onstrated during the recent market
doesn’t hunt for facts of this type, lie crash. Also, people realized more
The Time, The Contract
And The Man
W e might aid you in bringing
about the proper combination
of these three elements.
O m a h a
L if e In s u r a n c e
Co m pan y
Omaha, Nebraska
H. E. WORRELL, Sec.-Treas.
Central Western Banker, April, 1930
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Federal Reserve Bank of St. Louis
clearly than ever before the dangers
in the path of the inexperienced in
vestor. We, therefore, have a marvel
ous opportunity, but the work which
we do today must stand the tests of
tomorrow if life insurance and trust
company cooperation is to be really
effective. Recommendations which are
all right in theory but not in practice
won’t help to lay a strong foundation.
Nor will recommendations based on
insufficient knowledge of the other
man’s business. We can build a sub
stantial structure only if the financial
plans we set up today carry out their
real purpose in the future.
Leaves Omaha
C. I. Hart, agency manager of the
Equitable Life Insurance Co. of Iowa
at Omaha, has. resigned to assume the
management of an Iowa farm that he
owns. The company has consolidated
the offices at Omaha, Lincoln and
Hastings, and these will be put in
charge of A. E. Wilder, agency man
ager at Lincoln, who will make Oma
ha his headquarters.
Will Use Movies
Aetna agents have the opportunity
to be pioneers in the use of a brand
new form of advertising as a result of
arrangements completed last month by
the Aetna’s Publicity Department.
Each month during 1930, an animated
cartoon movie with full sound effects
including incidental music by a tenpiece orchestra will be available to
Aetna agents for them to run in their
local moving picture theatre. Each of
these films is built around the current
Aetna national magazine advertise
ment and contains the name and ad
dress of the local agent from whom
Aetna Coast-to-Coast protection may
be obtained.
So far as is known, this is the first
use by an insurance company, and in
fact by an advertiser in any line, of
the new sound movies for advertising
purposes in connection with theatre
distribution by local representatives.
New Policies
The Equitable Life Insurance Com
pany of Iowa has recently announced
three new policies on the 3 per cent
reserve basis; Ordinary Life matur
ing as an endowment at age 85, Life
Paid-up at 65 maturing as an endow
ment at age 85, and Endowment at
age 67. The minimum policy issued
will be $10,000 and the saving in ex
pense because of the increase in the
average size policy will make the net
cost very attractive. The policies are
not of the so-called “select” class and
the same underwriting rules used on
17
Condensed Financial Statement
FEDERAL SURETY C O M PAN Y
DAVENPORT, IOWA
As of December 31, 1929
ASSETS
Cash ................................................ $ 889,268.72
Stocks and B onds........................... 1,031,100.16
Real Estate .....................................
95,650.09
Real Estate Mortgages...................
764,351.69
Miscellaneous Assets .....................
362,451.75
Interest A ccrued.............................
41,133.95
Due from other companies.............. 217,135.84
Premiums in Process of Collection. 551,166.16
LIABILITIES
Reserve for Claims and Losses. . . .$ 711,917.26
Reserve for Unearned Premiums. . 859.944.76
Reserve for Commission and Taxes 129,538.93
Total Assets ...................................$3,952,258.36
Total Liabilities .............................$3,952,258.36
Cash C ap ital............$1,308,300.00
Net Surplus.............. 942,557.41
Surplus to Policyholders............... 2,250,857.41
OFFICERS
C harles S huler
Chairman
B. Y et ter
Vice President
F rank
W. L. T aylor
President
T
heo.
Vice President
G. L o r e n z e n
Secretary
W. H. S t u a r t
Asst. General Manager
I ra
A. S c h i l l e r
Treasurer
C arl S h e r m a n
General Counsel
COMPARATIVE GAINS FOR 1929
Gain in “Investment Income’’ ..........$ 84,874.58
Gain in “Total Reserves” ................. 224,919.24
Gain in “Net Premiums” ................. 290,340.22
Gain in “Surplus to Policyholders” .. 303,781.66
Gain in “Premiums in Force” ............ 365,394.25
Gain in “Net Surplus” ..................... 495,481.66
Gain in Net “Admitted Assets” ........ 528,700.90
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Federal Reserve Bank of St. Louis
E. D e c k e r
Vice President
G eo .
F rank Cohen
C harles P ausner
Vice President
C h a r l e s D. R ob b in s
Chairman Finance Committee
H
arold
H odges
General Attorney
Writing all forms of
Fidelity and Surety Bonds,
Accident & Health, Automobile, Burglary,
Plate Glass, and other forms of
Casualty Insurance
Correspondence solicited from agents in unoccupied territory
Central Western Banker, April, 1930
18
the company’s other polices will apply
to these new contracts. The three con
tracts provide a well balanced series
of 3 per cent policies and make it pos
sible for the company to offer a policy
to fit practically every insurance need.
At Omaha
J. A. Pound of Omaha, Nebraska,
has been appointed agent of the Amer
ican Home Assurance Corporation for
that city and vicinity. H. T. McBur
ney will represent the American Con
stitution Assurance for the same ter
ritory.
“The Story of Nylic”
The New York Life Insurance Co.
has just published “The Story of Ny
lic,” a history of the origin and devel
opment of the company from 1845 to
1929, by Lawrence F. Abbott. It is a
book of over 300 pages, is written in a
delightful style and contains a number
of illustrations.
The company did not start with its
present well-known name. In 1841 the
New York Legislature chartered the
Nautilus Insurance Co. with $200,000
authorized capital to do a marine and
fire insurance business. Two years
were allowed to raise the capital. Be
fore that time expired an act amend
ing the charter was secured to permit
the company to write life insurance
also and to operate on the mutual plan
when applications for $300,000 of in
surance had been secured.
Inspect Aurora
Sponsored by the Business Men’s
Club, the Rotary and Commercial
Clubs cooperating in the work, the
Nebraska State Fire Prevention As
sociation made an inspection of Au
rora, March 20. Under the auspices of
the Business Men’s Club, a public
meeting was held at a dinner in Fidel
ity Hall at 6 :30 in the evening at
which talks were made by members of
the speakers’ bureau of the Associa
tion and others. The high school stu
dents were addressed by a representa
tive of the Association at 1 :10 in the
afternoon.
Low Death Rate
The amazing low death rate of 9.40
per 1,000 has been set for January 1,
1930, making this the best January
from a health standpoint among the
more than 19,000,000 industrial policy
holders of the Metropolitan Life In
surance Company. The previous best
record among this class was 9.41 in
1927.
Legal Brain Teasers
Last Minute News
(C o ntinued from Page 3)
JLTUNTER S. MARSTON, for the
past ten years vice president of
Bancamerica-Blair Corporation and its
predecessor Blair & Co., Inc., and a
member of the organization since 1903,
was elected president of BancamericaBlair Corporation at a meeting of the
board of directors held February 18.
Mr. Marston succeeds Elisha Walker,
recently elected chairman of the board
and active executive head of the
Trans-America Corporation, the larg
est securities holding and investment
company in the world, having re
sources of over $1,000,000,000. Banc
america-Blair Corporation is the se
curities affiliate of the Bank of Amer
ica, N. A., which is one of the oldest
banks in the United States.
Cost of Free Service
The following editorial appeared in
the Chicago Journal of Commerce re
After Hours
cently regarding the enormous amount
The Connecticut bank vaults were it costs the banks of the country to
locked, the officers in charge had de maintain free services:
parted, an express messenger tendered
Free service seems to be free to
a parcel, the junior in charge refused
everyone except those who make the
to accept it, and the parcel was lost.
“If you’d taken it when we offered gratis service possible.
it, there would have been no loss,” the
According to a survey conducted by
express company contended.
the committee on unprofitable service,
But the Connecticut courts (in 17 of the A. B. A., the free service enum
Conn., 138) ruled that the bank was erated are costing the banks of this
justified in refusing delivery.
country $300,000,000 net annually.
Possibly this uncomfortable total
will explain, in part, why so many of
The
our banks are objecting to “increased
costs and decreased profits.” Banking
institutions give away to their cus
tomers $300,000,000 worth of valuable
of Lincoln, N ebraska
service without any substantial com
pensation. It is easy to see why the
B. R. BAYS, P re s id e n t
banks complain. They have literally
given until it hurts.
The Service Life is known as a company of Service,
As has been intimated in this re
ideals and Aggressive Principles
port, the major cause for this unsatis
factory condition which exists in the
bank’s profits and loss accounts is un
questionably competition inspired by
STARTED BUSINESS SEPTEMBER 20, 1923
the great American desire for “Bigger
and
Better Banks.” It has been said
T otal A dm itted A ssets
Standard B u sin ess in F orce
that it is not a case of high cost of
$ 125,682.7:*
IJec. 31, 1!>23
$1!)6,000
banking, but the cost of “high” bank
$ 1 4 0 ,7 3 7 .3 6
Dec. 31, i 924
$ 3 ,1 4 2 ,5 0 0
ing—the cost of vanity. Giving all
$303,724.87
Dec. 31, 1925
$7,058,600
the service that the public asks for
$522,557.94
Dec. 31, 1926
$10,829.700
free of charge is classed as “high”
banking, or vanity.
The solution of the problem is to be
limited less in service, but the charge
for all that is not what can be classed
as a “reasonable” service.
( C o n t i n u e d f r o m P a g e 4)
SERVICE LIFE INSURANCE COMPANY
WE STAND ON OUR RECORD
$767,380.73
Dec. 31,1927
$13,071,662
$1,013,048.00 Dec. 31,1928 $15,506,000
Central Western Banker, April, 1930
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Federal Reserve Bank of St. Louis
19
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Nebraska News
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Officials of the two banks issued a
statement saying that business was not
sufficient to warrant the operation of
three banks in North Platte.
A . W. M A T H E R S ,
P re s id e n t, N e b r a s k a B a n k e r s A s s o c ia tio n
W M . B . H U G H E S , S e c re ta ry ,
N e b r a s k a B a n k e r s A s s o c ia tio n
Becomes National Bank
The American State Bank of Bushnell, Nebraska, has made an announce
ment that they have changed to a Na
tional Bank and in the future would
be known as the First National Bank.
The new bank has a capital of $25,000
and a surplus of $5,000.
Now a National Bank
The Farmers and Merchants State
bank of Ashland, Nebraska, has ob
tained a national charter and will open
as the Farmers and Merchants Na
tional. The new bank will have capital
and surplus of $100,000. Deposits are
$1,250,000. H. A. Wiggenhorn is pres
ident.
Becomes National Bank
The State Bank of Glenvil, Nebras
ka, has received word that the comp
troller of currency had authorized it
to become the First National Bank of
Glenvil. The bank has a capitalization
of $30,000 and surplus accounts of
$ 6 ,000 .
It was organized as a private bank
in 1899 by L. L. Brandt, becoming a
state bank in 1913.
Officers of the bank are J. J. Mohlman, president; L. E. Uden, vice-pres
ident; and John H. Itzen, cashier. The
board of directors is composed of L.
L. Brandt, J. J. Mohlman, L. E. Uden,
John Ttzen and M. Uden.
THE STATE BANK of Seward,
Nebr., on March 1 became the Cattle
National Bank. The bank, one of the
oldest in its district was organized in
1872 by Claudius Jones. In 1879 John
Cattle, Sr., assumed control and for
many years Walter Cattle has been
the president of the bank. His son.
Robert Cattle, is the cashier.
GUY S. HOFFER, who has been
in the Omaha offices of the H. M.
Byllesby company of Chicago since
August, 1928, has been appointed sales
manager of the company, and will
have headquarters in the Chicago of
fice of the investment house.
Last October Mr. Hoffer had been
transferred to the Chicago office, but
Bank Opens at Seward
The many details incidental to the had spent much of his time traveling
nationalization of the State bank of in mid-western territory and maintain
Nebraska, at Seward, were completed ed his home in Omaha. Before Mr.
recently and the bank has opened un Hoffer’s connection with the Byllesby
der the name of the Cattle National company he was', associated with
Burns, Potter & Co., of Omaha.
bank.
The institution, which is one of the
WALTER DALE CLARK, presi
oldest and strongest in that district,
was organized in 1872 by Claudius dent of the Omaha National Bank, re
Jones. In 1879 John Cattle, sr., took turned early in March from a trip of
over the control when it was still a several weeks to New York and other
private bank, the same being incorpor eastern points.
ated in 1889. For many years Walter
Cattle has been at the head of the in
FREDERICK H. DAVIS, presi
stitution.
dent of the First National Bank of
Omaha, has been on a brief vacation
to the west coast.
Consolidate at North Platte
Sale of the Union State bank to
THE OMAHA NATIONAL Bank
the McDonald State bank of North
Platte, Nebraska, was announced re has altered its woman’s quarters to
provide more room and a greater de
cently.
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Federal Reserve Bank of St. Louis
■llllllllllllllillllllllillllllllllllilllllllllt
gree of privacy. Three tellers are now
in this department, compared to one
who formerly served the women cus
tomers of the bank.
TWENTY - FIVE state banks of
Nebraska, which were closed and tak
en over in the past year under the
provisions of the law passed by the
legislature of 1929, have been reopen
ed by composition settlements made
with the depositors.
Six of the banks had previously
been in the hands of the guaranty
fund commission.
The Harrison State bank accom
plished reorganization without change
of ownership or management and
without loss to depositors.
The reopened banks are:
Nebraska State Bank of Bloom
field ; Farmers State Bank of Raeville; State Bank of Surprise, Sur
prise, Neb.; City State Bank of Sut
ton ; Mason City Banking Company;
Kennard State Bank, Kennard; Farm
ers State Bank of Cozad; Rosalie
State Bank of Rosalie; Commercial
Bank of Grant; Dawson County State
Bank of Lexington; Citizens State
Bank of Alliance; Abie State Bank,
Abie; Farmers and Merchants Bank
of Bloomfield; Sutton State Bank,
Sutton; St. Libory State Bank, St. Libory; First State Bank of Bertrand;
Farmers and Merchants Bank of Edi
son; Farmers State Bank of Clarks;
American State Bank of Kearney;
Farmers State Bank of College View;
Peoples State Bank of Wolbach; Har
rison State Bank, Harrison; State
Bank of Cairo; Bank of Eagle; Amer
ican State Bank of York.
Twenty-sixth Bank Re-opens
The twenty-sixth closed Nebraska
state bank to reopen under the reor
ganization law resumed business when
the Bank of Cedar Bluffs again open
ed its doors.
Announcingthe reorganization, Bank
Commissioner Woods said the institu
tion now has loans and discounts oi
$85,349.37; cash, $55,933.69; capital
stock, $20,000; surplus, $5,000; depos
its, $113,069.27.
Depositors of the old institution, he
declared, agreed to accept a 60 per
cent reduction in their accounts to aid
in removing slow and doubtful notes.
Central Western Banker, April, 1930
20
Nebraska Guaranty Abandoned
^^EBRASKA, after 20 years of ex
Second: A provision for strength
perience under the bank guaran ening the condition of banks by re
ty law, abandoned it by the passage, at quiring that they charge off bad debts
the special session of the legislature ordered by the state department of
which adjourned March 15, of a new trade and commerce before declaring
dividends and must carry an amount
banking measure.
equal to 20 per cent per year of net
The principal features of the new profits to the surplus fund until this
banking law are these:
shall equal 50 per cent of the amount
F irst: An assessment of two-tenths of paid up capital stock, “and until
of one per cent of the average daily the combined capital and surplus shall
deposits of state banks, to be levied equal 10 per cent of the average daily
for ten years beginning January 1, deposits.”
Third: A provision making it a fel
1930, the proceeds to be applied to the ony to circulate false rumors about a
guaranty fund deficit.
bank’s condition.
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T N THE handling of business from banks a
1 characteristic p a rt of our service has always
been — INDIVIDUAL ATTENTION to every
transaction.
R
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C o m pa ny
lnvestiiielit Ba 11kers
1116-1122 City National Bank Bldg.
Omaha
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ENDEAVORING AT ALL TIMES TO SERVE
NEBRASKA BANKS AND BANKERS
IN T H E IR INVESTM ENT NEEDS
The First Trust
Company
of
LINCOLN, NEBRASKA
"Complete Investment Banking and Trust Service”
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Central Western Banker, April, 1930
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Federal Reserve Bank of St. Louis
Fourth: The so-called “saving
clause” which provides for a resump
tion of the guaranty fund law if pro
visions of the new act are found un
constitutional. This clause, which was
the cause of much debate during the
special session, finally was made to
read as follows:
“Section 17: This inducement for
the passage of Section 16 of this act,
which repeals various sections of the
statutes relating to the bank deposit
ors guarantee fund and assessments
therefor, is the passage of Sections 1
to 5 inclusive of this act, and if any
one or more of said sections one to
five inclusive of this act shall for any
reason be held unconstitutional or in
valid in whole or in part then and in
that event said Section 16 of this act
shall be invalid and of no' force or ef
fect and the sections of the statutes
sought to be repealed by said Section
16 shall be in full force and effect.”
It is estimated that the assessments
provided for in the bill will raise at
least $3,600,000 in the ten years
named in the act. To this sum may be
added the $3,000,000 of assessments
levied and now being challenged in
the courts; $2,000,000 which, it is es
timated, will be realized from assets
of failed banks, making a total of ap
proximately $8,000,000 which may be
realized from the banks as their share
of the payment of the deficit in the
guarantee fund, which is estimated
between $16,000,000 and $20,000,000.
To this deficit also may be applied
$8,000,000 more dollars if the voters
of Nebraska, at the November elec
tion, adopt a constitutional amendment
providing that the legislature may levy
taxes in amount large enough to yield
$8,000,000 for this purpose. The tax
would not be levied in one year, but
might become a continuance of the
capital fund levy, which is now com
plete.
The so-called “South Dakota” plan
for strengthening the banks, proposed
by Governor Weaver, was entirely
abandoned in favor of the provision
for building up the surplus.
The proposal of the governor that
the banks’ surplus be deposited with
the state treasurer was also abandon
ed. The law provides that the surplus
account of the bank be maintained
separately from other accounts; that
the surplus be maintained in cash or
in securities kept within the bank,
and that these be available for ex
hibit at any time when required by the
state department of trade and com
merce.
The new bank bill was passed with
the emergency clause, so that it be-
21
came effective immediately upon its
signing by Governor Weaver.
The assessments provided for, dur
ing the next ten years, will be used to
apply on only those losses which have
occurred before the bill became effectice. Attorney General Sorensen sub
mitted an opinion that it would be il
legal to provide an assessment fund
providing for both future and past
losses.
The new law was accepted on be
half of the Nebraska Depositors Lea
gue by R. T. Jones, its manager, who
said:
“I have had several attorneys look
over the bill and they do not agree on
its validity. But I feel that the mem
bers acted conscientiously and since
the state has gone to a good deal of
expense in calling the special session I
believe it is the duty of the depositors
to agree to the decision. Depositors
and all citizens should return their
money to good-paying banks and work
for their success.”
The senate, at the last moment of
the session, adopted a resolution per
mitting depositors in failed banks to
sue the state, either in their own coun
ties or in Lancaster; county.
While there was proposed, during
the session, that the investigation of
the management of the guaranty fund
and the failed banks, which has been
carried on under the direction of for
mer Governor A. C. Shallenberger, be
done away with, this proposal failed,
and the audit is to continue.
Optimistic Outlook
Northwest Bancorporation’s recent
monthly business summary is optimis
tic about the employment outlook in
the Northwest states and predicts em
ployment for thousands of men with
in a month from rapidly expanding
maintenance work on highways and
resumption of road construction sched
ules.
It is estimated that in the United
States at large 625,000 laborers, en
gineers, contractors and officials will
be employed in highway work in 1930.
Ten northwestern and middlewestern
states, Wisconsin, Minnesota, North
Dakota, South Dakota, Iowa, Nebras
ka, Montana, Wyoming, Idaho and
Washington had 811,000 miles of rur
al road of every description, which is
27 per cent of the entire United States
rural highway system. Of these ten,
South Dakota has the greatest mile
age, followed closely by Minnesota,
North Dakota and Iowa, each having
in excess of 100,000 miles. Thirteen
per cent of the aggregate mileage of
these ten western states is surfaced.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Northwest Bancorporation estimates
that 30,000 will be employed on road
work when the season opens shortly
and that in the ten states named the
number employed will exceed 150,000.
Fact-finding in Advertising
Progress which has been made in
applying fact-finding and research to
bank advertising and the banking field
was described by L. W. Munro, New
England Manager of Doremus and
Company, Boston, M assach u setts,
speaking before the eastern regional
savings conference under the auspices
of the Savings Bank Division, Ameri
can Bankers Association on “Banking
Service and Savings’ Banking from
the Business Man’s Viewpoint.”
Basing his remarks on a recent re
search of the Boston banking field
made by his firm, he stated that the
results showed a distinct need for ed
ucational work on the part of the
banks to give the average business
business man a clearer understanding
of the functions of the banks. It de
veloped, he said, that there still exists
a mental barrier, “a certain fear,” in
the minds of business men toward
their banks.
The
Continental National Bank
LINCOLN, NEBRASKA
“ A Bank for Bankers”
Our consistent growth and progress, contributed to
largely by our correspondents throughout Nebraska, is
indicative of the careful service and prompt attention
rendered them.
We solicit the accounts of Banks and Bankers, offer
ing every facility and service.
O F F IC E R S
CHAS. T. K N A P P , C h a irm a n o f th e B oard.
E D W IN N. V A N H O R N E , P r e s id e n t
W. S. B A T T E Y , A s st. V ic e - P r e s
T. B. ST R A IN , V ic e - P r e s id e n t
R A Y C. JOHNSON, A sst. V ic e -P r e s.
E D W A R D A. B E C K E R , C a sh ier
W H E A T O N B A T T E Y , A s st. C a sh ier.
United States National Bank
O M A H A
“An Unbroken Record of Seventy Years
is a Guarantee of Safe and
Satisfactory Service”
OFFICERS:
W . B. T. B elt , Chairman o f the Board
R obert P. M o r s m a n , P resident
G wyer H . Y a t e s , V ice-P resident
P erry B. H e n d r ic k s , A ss’t. V.-Pres.
H. M . B u s h n e l l , V ice-P resident and R ALPH R- R a in e y , Cashier
T ru st Officer
H arry E. R ogers, A ssista n t Cashier
To seph C. M c C lu re , V ice-P resident
? RNEST L andstrom A ss’t. Cashier
J
.
A u s t in L. V ick ery , A ssista n t Cashier
I h o m as F. M u r p h y , V ice-P resident
v ICTor B. C aldw ell , A ssista n t Cashier
C h arles F. B r i n k m a n , A s s ’t. V.-Pres. H. W . Y a t e s , A ssista n t T ru st Officer
Central Western Banker, April, 1930
22
O F F IC E R S
F O R D E. H O V E Y , P resident
JA S . B. O W E N , V ice-Pres.
F. J. E N E R S O N , V ice-Pres.
W . H. D R E S S L E R , Cashier
L. K. M O O R E , Asst, to P res.
H . C. M IL L E R , Asst. Cash.
C. L. O W E N , A sst. Cash.
H E N R Y A. H O V E Y , A sst. Cash.
T. G. BOGGS, Auditor
OUR B A N K IN G ROOM
M A IN FLOOR RIGHT
Located in the center of the live stock mar
ket — equipped to anticipate your every need
— backed by a willingness and a desire to be of
service to you. On the strength of these fea
tures we earnestly solicit your Omaha business.
Stock Yards National Bank
of
South Omaha
Affiliated with the
N orthw est Bancorporation
The Only Bank in the Union Stock Yards
Central Western Danker, April, 1930
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
“The ideal banking situation exists
only when the bank official, through
his sincere desire to understand the
manufacturer’s or merchant’s special
problems, has won their complete con
fidence,” he said. “While such a situa
tion was found in a number of in
stances, both in the largest and small
est banks, it had more common ex
istence among the smaller banks.”
As to bank mergers, the research
showed beyond any question a definite
place for the smaller, well organized
bank, he declared, adding:
“Here again the personal equation
was an important factor, with a sub
stantial feeling in favor of those banks
whose officials were friendly and en
joyed the confidence of their custo
mers, and there were several com
plaints of inexperience and aloofness
against the officials of the larger
banks.
“An impressive fact gained from
the investigation was the feeling that
banks should have in their employ
practical business men to counsel on
matters of production, merchandising
and sales, criticism being made that
the helpfulness of many bank officials
stops with financial matters. The re
search also disclosed that from an ad
vertising and sales standpoint there is
a real need for advertising the com
mercial departments of the banks as
evidenced by the specific interest in
that direction by corporate officials
and business owners.”
Canada’s Business Expansion
The dominion bureau of statistics
has issued, a summary of financial
transactions in Canada during 1929
showing total payments by bank check
at clearing house centers to have ex
ceeded the preceding year by 7.4 per
cent. The total of such financial trans
fers reached the figure of $46,671,000, 000.
Speculative trading, reaching a new
high level in the history of the Cana
dian stock exchenges, and greater ac
tivity in industry and trade accounted
for the expansion.
All areas in Canada recorded in
Prairie Provinces, in which the debits
creases, with the exception of the
showed a decline of 1 per cent from
1928.
Prosperous conditions in British Co
lumbia during the early part of the
year, the report states, resulted in a
greater percentage gain than in any
other economic area. Debits in that
province at $2,923,000,000 were 17 per
cent greater than in the preceding
year.
23
News
the
Efficiency in Production
Despite a big increase in population
and a similar decrease in live stock
production, American people are con
suming almost as much meat as they
did several decades ago, according to
W. Whitfield Woods, Chicago, presi
dent of the institute of American meat
packers, who addressed the annual
convention of the Kansas Live Stock
association in Topeka, Kansas.
Woods explained that apparently
paradoxical situation by the improved
methods of raising live stock and mar
keting the meat.
“The number of beef cattle, hogs
and sheep on farms today is consider
ably smaller than in 1900,” Woods
said. “Meanwhile the population has
increased from about 76,000,000 to
more than 120,000,000, and yet per
capita consumption of meat today is
less than 5 per cent lower than in
1900.
“Live stock is being raised more
efficiently and marketed earlier, thus
increasing the producer’s turnover and
making it possible to market a larger
number of animals from a herd of a
given size.”
Discussing imports and exports of
meats and meat products, Woods said
that since the war the export trade has
been confined mostly to port products.
Last year American packers exported
nearly 1,400,000,000 pounds of meat
and allied products, valued at approx
imately $190,000,000. The largest in
dividual export item was lard.
The value of the annual output of
the meat packing industry, more than
$3,000,000,000, is greater than any
other manufacturing industry in the
country, Woods stated.
Feeders’ Meeting at Lincoln
Nebraska’s eighteenth annual spring
Feeders’ meeting is scheduled to be
held at the state agricultural college,
Lincoln, on Friday, April 18.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Omaha
Tentative plans outlined for the
day’s program indicate that it will be
one of the most interesting ever put
on, from the standpoint of informa
tion that will be made available to
feeders on practical problems of the
present day.
Benefits of GrindingGrinding feed for steers gives good
results if practiced properly. Tests at
three state experiment stations last
year showed that ground grain and
hay could be fed to produce faster
and cheaper gains.
At the Indiana Experiment station
a feeding trial showed that one-third
of the corn ration for steers could be
replaced with oats ground medium
fine. This ration, together with cotton
seed meal and roughage, made a gain
of 2.6 pounds per day, and a profit per
steer of more than $12. Profitable use
of oats in this way should be welcomed
by many farmers in the central states.
Barley is another crop which prac
tical tests are showing to be more
worthwhile. Ground barley has been
compared with corn at the Michigan
Experiment station, where it was fed
to Flereford calves. One lot received
cracked barley along with silage and
hay, while corn was substituted for
the barley in the other lot’s ration. The
lot fed barley made gains of almost
two pounds a day, or slightly more
than those made by the corn fed
calves. Feed cost on the lot fed
cracked barley was also lower than
for the other group of calves.
Another test carried on last year at
the Minnesota Experiment station
showed daily gains of 2.6 pounds per
steer for ground and mixed corn and
alfalfa hay. These steers made their
gains at a feed cost of more than a
dollar a hundred less than that for
steers which were fed unground corn
and long alfalfa hay. The net income
from the lot fed ground feed was also
higher than for the other group.
Farm Income
The 102 farmers of Cass county,
Nebraska, who kept farm records in
1928, had an average of $1,781 as a
return for their labor, management,
and risk after paying all expenses and
allowing 5 per cent interest on their
investment. In addition to the above
earnings, each family received certain
items of produce such as milk, butter,
eggs, vegetables, etc., of which no re
cord was kept. Of these 102 farmers,
43 were tenants, 21 were part-owners
and 38 were owner-operators of the
land which they farmed. It is believed
that these families received from the
farm, produce and shelter, the aver
age value of which, would amount to
somewhere between $500 and $600 per
farm.
There were two principal reasons
for the high labor and management
returns of $1,718 in Cass county in
1928. The first is that crop yields were
above normal. The average corn yield
in the county was seven bushels great
er than the 10-year average, 19161925. The average wheat yield was 4
bushels per acre greater and the yields
of hay, oats and other crops showed a
small advantage. The second reason is
that cattle feeding was unusually prof
itable during the winter of 1927-1928.
These Cass County records were
collected and kept under the direction
of L. R. Snipes, who was at that time,
country agricultural agent of the coun
tv. For the purposes of comparison,
the farms have been divided into
groups which include the 20 least
profitable farms and the 20 most prof
itable farms. The 20 most profitable
farms of the total of 102 farms, after
allowing 5 per cent interest on the in
vestment, has an average of $4,135 to
pay the operator for labor, manage
ment and risk, while the 20 least prof
itable farms lacked $23 per farm of
making 5 per cent interest on the in
vestment.
Central Western Banker, April, 1930
24
Wheat Stocks Show Decline
Stocks of all kinds of grain in Ne
braska except wheat and rye are above
last year and all are above the fiveyear average, says the state and fed
eral division of agricultural statistics.
Stocks of all grain crops for the coun
try as a whole are below last year and
below the five-year average except
wheat and barley. The wheat crop is
promising but needs a little surface
moisture.
Corn stocks are estimated at 42 per
cent of last year’s crop, or 99,852,000
bushels as compared with 74,445,000
bushels a year ago and the five-year
average of 88,310,000 bushels. The 10year average of stocks of corn is 43
per cent. The 1929 crop was above the
average production and feeding oper
ations are about the usual. Wet wea
ther delayed husking last fall and low
prices discouraged selling.
It is estimated that 30 per cent of
the corn crop has or will be shipped
out, or a total of 71,323,000 bushels.
The 10-year average shipment is 30
per cent. Last year, 26 per cent, or
as the crop was considerably smaller.
The per cent of merchantable quality
is 91 per cent. The moisture content
USTOMER banks find us unusually
well-equipped to analyze their in
vestm ent lists and those of their
clients; It is our desire to be of helpful
assistance to out-of-town customers with
respect to their secondary reserves—their
construction and analysis.
C
THE NORTHERN
TRUST COMPANY
Northwest Corner LaSalle and Monroe Streets
CHICAGO
Central Western Banker, April, Í930
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
is high. Germination tests of seed corn
average very low.
There are 11,311,000 bushels of
wheat or 20 per cent of last year’s
crop on hand as compared to 13,285,000 bushels on hand a year ago and
the five-year average of 8,948,000
bushels. The 10-year average of wheat
stocks is 19 per cent of the crop, or
46,975,000 bushels, will be shipped out
as compared to the 10-year average
shipment of 71 per cent of the crop.
Professor George R. Boomer Dies
Prof. George R. Boomer, 61, who
since 1918 has been connected with
the extension department of the Uni
versity of Nebraska, died at his home
in Lincoln last month. His duties
were along marketing lines.
Professor Boomer was frequently
in demand as a lecturer and had ad
dressed high school graduating classes
throughout the state. He came to Ne
braska from Illinois in 1877 and for a
time lived near Beatrice. He started
his teaching career in Gage county.
Surviving him are his widow, four
sons, a daughter, a brother and a sis
ter. Professor Boomer was a brotherin-law of Dr. W. T. Spencer, live
stock commissioner of the Omaha
Live Stock Exchange.
Early Lamb Crop
The early lamp crop of 1930 in the
principal early lambing states as a
whole is somewhat larger than the
early crop of 1929, according to re
ports received by the Department of
Agriculture as of March 1. In general
the condition of the early lambs at the
beginning of March this year was con
siderably better than at the same date
a year ago, when it was below aver
age. Present prospects are for a larg
er market supply of spring lambs than
last year for the three month, April to
June, the quality of which will be av
erage or better.
Weather conditions during Febru
ary were exceptionally good in all
areas. Prospects for spring feed are
as good or better than last year in
nearly all of the early lambing states.
Quinby Named Manager
Farmers West Central Grain Coop
eratives, Inc., first Nebraska organiza
tion to secure full benefits of govern
mental stabilizing machinery, has ap
pointed L. L. Quinby, veteran Omaha
grain commission man, general mana
ger.
Quinby is president of the Mid-west
Grain company. The West Central has
applied for membership on Omaha
Grain Exchange and undoubtedly will
be granted a seat, it was said.
25
Helping Prosperity
BANK YOUR MONEY
\ o u r Bank o ffe rs
safety of principal,
with profit, without
w o rry ----- And when
m i
you're ready, guides
you to other safe in
vestment opportuni-
was described as “approaching hyster
ia,” and carried the appeal for “Con
fidence and Patience.” Card No. 2 fol
lowed six weeks later with the mes
sage “Buy generously . . . without
extravagance” and “Save regularly . . .
without stinting.”
Card No. 3 appeared in the cars
throughout the entire country the first
week in March. This message deals
directly with every man’s finance. It
is a logical sequence to card No. 2 and
carries a clear, positive, message ■
—“Bank your money and you’ll have it.”
YOU'LL HAVE IT
Take Aim!
It is an editorial truism that when
verses have to be declined with thanks,
as is frequently the case, it is unwise
Above, One o f C ollier’s S treet Car A d vertisem en ts to Aid
to give reasons for the rejection. You
P rosp erity
simply cannot argue with a poet. But
“g A N K your money and you’ll have iness and financial stability of the na editors are human, after all, and some
times they do not live up to their ex
it. Your bank offers safety of tion.
alted principles. The story goes that
Last
November,
when
a
financial
principal, with profit, without worry.
there came to a magazine office not
crisis
threatened
and
the
situation
And when you’re ready, guides you to
called for sound action on the part of long ago the metrical outpouring of a
other safe investment opportunities.”
recognized business and financial lead feminine soul, entitled “I Wonder If
Thus Barron Collier, President of ers, Mr. Collier started his “Prosperi He’ll Miss Me!” The editor read the
Barron G. Collier Incorporated and ty Series.” It was the first of this type effusion with constantly increasing de
the Street Railways Advertising Com of constructive influence to appear be pression and then scrawled on the re
pany, issues the third message of his fore the public and it was met with jection slip that accompanied the re
turned manuscript: “If he does, he
“Prosperity Series,” in one of the a whole-hearted reception.
Card No. 1 was displayed Novem ought never to be trusted with fire
most effective and unique moves made
to restore public confidence in the bus ber 1, at the time when the situation arms again.”
BO N D SGovernment
Municipal
Railroad
Utilities
Industrials
Suitable for Your
Secondary Reserve
Write for our carefully selected list — Bond Department
L IV E STOCK NATIONAL BANK OF SOUTH OMAHA
Union Stock Yards
OMAHA
OFFICERS
W. P. A DK INS, P resid en t
ALVIN E. JOHNSON, V ice-P resident
HOW ARD O. W ILSON, C ashier
R. H. KROEG ER, A s s is ta n t C a sh ie r
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Federal Reserve Bank of St. Louis
L. V. PULLIAM , A ssistan t C ashier
W. S. HOGUE, A ssista n t Cashier
Central Western Banker, April, 1930
26
CARTOONS OF THE MONTH
T H E TO U R IST R E T U R N S HOM E
Sa m . “ M other, ju st lam p th e sheaf of mazum a w e left up in
PKES/DEH T
PASSES
ALO NG
Canady ”
M o th e r :
“ W ell, we got our m on ey’s worth, I'll tell the cock
eyed world.”
Sa m . “ Y ou said a mouthful, mother ”
T H E HOOVER W AY
— Halladay in the Providence Journal.
—R acey in the M ontreal Star
GIVE ME
INDEPENDENCE.
LONG D IS T A N C E
— Herblock in the Chicago Daily News.
Copyright, 1930, by the Life Publishing Company
“ U P T H R E E PO IN TS?
Central Western Banker, April, 1950
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
I J U M P E D TOO SO O N !”
— Life.
27
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outh Dakota News
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Name Key Men
The names of county key men to
serve for the current year on the agri
cultural committee of the South Da
kota Bankers Association were an
nounced recently by C. L. Chase of
Willow Lake, chairman of the com
mittee. These county key men are
county chairmen to head the agricul
tural activities of banks in their re
spective counties.
The group chairmen will hold ses
sions with their county key men early
this spring for the purpose of determ
ining activities which are to be fea
tured during 1930.
The list of key men by groups fol
lows :
Group 1—J. A. Danforth, Yankton,
group chairman. William Thompson,
Tyndall, Bon Homme; W. H. Frei,
Wagner, Charles Mix; George K. Brosius, Vermilion, Clay; Karl Fromm,
Corsica, Douglas; Lawrence Authier,
Elk Point, Union; and T. J. Frick,
Yankton, Yankton.
Group 2—A. L. Berg, Baltic, group
chairman. J. R. Shirey, Winfred,
Lake; J. Huisman, Hudson, Lincoln;
T. S. Mayer, Bridgewater, McCook;
H. A. Schueller, Canova, Miner;
George McMahon, Sioux Falls, Min
nehaha ; J. R. Coonrod, Flandreau,
Moody; and F. E. Jackson, Hurley,
Turner.
Group 3—R. H. Seydel, Menno,
group chairman. Frank Loevinger,
White Lake, A urora; C. H. Coxe,
Chamberlain, Brule; R. A. Johnson,
Gann Valley, Buffalo; E. A. Lommer,
Mitchell, Davison; Julius Bertsch,
Fulton, Hanson; K. T. Aisenbrey, Adpena, Jerauld; V'. A. Jorgenson, Dra
per, Jones; E. B. Serr, Kennebec, Ly
man ; and F. H. Winson, Letcher, San
born.
Group 4—C. L. Chase, Willow
Lake, group chairman. A. R. John
son, Brookings; M. J. McGillivray,
Garden City, Clark; Henry Hanten,
Watertown, Codington; A. G. Berger,
Clear Lake, Deuel; P. C. Lien, Revillo, Grant; and C. N. Halvorsen,
Castlewood, Hamlin.
Group 5—Camden Rayburn, Hu
ron, group chairman. F. B. McKichan,
Bonilla, Beadle; George Gunnison,
Orient, Faulk; Russell Bard, Miller,
H and; Charles Lee Hyde, Pierre,
Hughes; R. J. Drew, Highmore,
Hyde; William Habel, Arlington,
Kingsbury; R. J. Hackl, Hoven, Pot
ter; J. D. Fargo, Redheld, Spink;
and M. R. Brown, Onida, Sully.
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Federal Reserve Bank of St. Louis
Group 6—W. S. Given, Milbank,
group chairman. J. H. Kissinger,
Hecla, and Robert Weidenbach, Aber
deen, Brown; J. Schad, Roslyn, Day;
V. E. Swenson, Langford, Marshall;
Henry Helvig, Sisseton, Roberts.
Group 7—M. I. Larsen, Mound
City, group chairman. J. J. Brokofsky, Pollock, Campbell; J. O. Van
Nice, McLaughlin, Corson; A. B.
Lord, Eagle Butte, Dewey; K. J. Kundert, Bowdle, Edmunds; W. M. Ben
nett, Buffalo, Harding; L. E. Turner,
Leola, McPherson; R. A. H. Brandt,
Bison, Perkins; E. A. Walter, Selby,
Walworth; H. R. Hommedal, Dupree,
Zeibach.
Group 8—W. E. Dickey, Spearfish,
group chairman. T. C. Gay, Belle
Fourche, Butte; T. W. Delicate, Cus
ter, Custer; S. J. Clarke, Hot Springs,
hall River; G. C. Inman, Philip, Haak
on; L. A. Pier, Belvidere, Jackson; B.
E. Colby, St. Onge, Lawrence; B. Datin, Faith, North Meade; H. R. Jen
nings, Sturgis, South Meade; and A.
K. Thomas, Rapid City, Pennington.
Group 9—Frank T. Fetzner, group
chairman. J. H. Meyhaus, Bonesteel,
Gregory; C. A. Hodson, Norris, Mel
lette; and R. E. Montgomery, Colome,
Tripp-
Opens National Bank
The Bank of Philip, South Dakota,
chartered as a state bank in 1907, with
a capital of $7,500, has secured a char
ter as a national bank and opened its
doors as the First National Bank,
with a capital and surplus of $70,000.
Active officers of the bank are J. C.
Nelson, president; E. F. Walden,
cashier, and George C. Inman, assist
ant cashier. E. F. Walden has been
with the bank since its organization,
J. C. Nelson since 1916, and George C.
Inman since 1917.
Last December the Western Invest
ment Company, a holding company,
was organized by officers of the Bank
of Philip which took over all the
bank’s real estate as well as other as
sets of the bank.
Deposits of the First National Bank
are in excess of $600,000 and dis
counts in excess of $570,000.
Promotes Poultry Raising
The Bank of Ipswich, South Da
kota, has started a movement to pro
mote interest in poultry raising and is
offering to each boy and girl a setting
of well bred White Orpington setting
eggs if they promise to care for the
chickens.
The first part of October each one
which receives a setting of eggs is to
bring a hen or cockerel into the bank
and a poultry judging event will be
held in the nature of a poultry fair.
U tah News
Elected President
At the annual stockholders meeting
of the State Bank of Sevier, LTtah, it
was necessary to elect a new director
to take the place of John Christensen,
deceased, who had been the president
of the bank. The vacancy was filled by
the election of C. P. Christensen, and
all other directors were reelected, tow it: R. D. Young, D. P. Jensen, John
A. Parker, T. F. Young, W. E. Bay
of Kingston, L. W. Jones of Monroe,
N. J. Bates and I. A. Cowley. The
board then organized, as follows: C.
P. Christensen, president; R. D.
Young, vice president; D. P. Jensen,
cashier, and A. J. Bird, assistant cash
ier.
Reports from the cashier show the
bank in splendid condition after a suc
cessful year.
Alibi
“Darling,” breathed the salesman
suitor, “you are the most beautiful
woman in all the universe!”
“But,” objected the darling, for she
knew her stuff, “that’s exactly what
you told Susie Smith.”
For a moment he was non-plussed,
then his wits asserted themselves.
“Oh, that’s all right,” he retorted
easily, “Susie knows what an awful
liar I am.”—American Legion Maga
zine.
And Then?
A Texas lady was putting her chil
dren to bed early, so as to be free to
entertain expected evening visitors.
“All the little chickens have gone to
sleep,” said the mother, in a soothing
way by the children’s bedside.
“Yes,” piped the voice of her little
girl, “and the old hen went to bed with
them.”
Central Western Banker, April, 1930
28
Plan Check Charge
Service charges for checking ac
counts and matters of taxation are be
ing considered by the Eastern Colo
rado Bankers Association which was
formed at Limon recently.
The association which represents a
total of 31 banks in central-eastern
Colorado, is headed by V. C. Down
ing, president of Simla State Bank. J.
N. Quinn, cashier of First National
Bank, Hugo, Colo., is vice president;
A. E. Creighton, cashier of First Na
tional Bank of Flagler, treasurer, and
A. C. Sinclair, president of Limon
First National Bank, is secretary.
Many services now offered by banks
in Colorado are being rendered at a
great loss, the committee was inform
ed. It will endeavor to exploit condi
tions as a whole thruout the Rocky
Mountain region in order to supply a
C e n tra l T y p e w r it e r E x c h a n g e , Inc.
(E S T . 1903)
T Y P E W R IT E R S, ADDING M ACHINES, CHECK W R IT ER S
LATEST MODELS AT BIG DISCOUNT
A S K TO S E E
F IN E ST “H E A V Y D UTY ”
ALLEN-WALES 1PHEADDING
M ACHINE MADE
1912 Farnam St.
Omaha, Nebraska
d ie
Chase n a tio n a l Siaith
of the City of New York
P in e S treet corner o f N assau
C apital-----------------------------------------$ 1 0 5 ,0 0 0 ,0 0 0 .0 0
S urplus and P ro fits-------------------1 3 6 ,3 6 4 ,1 4 5 .1 4
D ep osits (D ec. 31, 1 9 2 9 ) _______
1 ,2 4 8 ,2 1 8 ,3 5 1 .7 0
Ì
standard service charge, the officers
announced.
Banks from Colorado Springs, east
to the Kansas line, on the Rock Island
railroad route, all banks from Denver
to the Kansas line on the Union Pa
cific, as well as all western El Paso,
Elbert, Lincoln, Kit Carson, Adams
and Arapahoe County banks are in
cluded in the organization.
Denver banks will be used as an ex
ample in the new system to be started.
They have been using the service
charge for several years, it was point
ed out.
Annual Meeting
The directors of the First National
Bank of Fountain, Colorado, held
their annual meeting recently and all
officers and directors were named to
serve another year.
The officers are: M. L. Rhinehart,
president; Paul Jones, vice president
and cashier; E. A. Logan, teller. The
directors are: M. L. Rhinehart, Paul
Jones, Scott O. Sharp, F. H. Monk
and Harry T. McGuire.
Cashier Resigns
K. W. Bellrose, who for the past
eight years has been cashier of the
First National bank of Eaton, Colo
rado, has resigned his position.
At the last annual meeting of the
bank Mr. Bellrose was elected to the
board of directors and will continue
to serve as a director.
Mr. Bellrose has been connected
with the Eaton Creamery, Inc., for
some months and will devote his en
tire time there, in capacity as secre
tary-treasurer.
Mr. Ritchey formerly of Greeley
and Loveland will take Mr. Bellrose’s
place.
O F F IC E R S
A lb ert H . W iggin,
C hairm an o f the Board
Jo h n M cH ugh
C hairm an o f th e E x e c u tiv e C o m m ittee
C harles S. M cCain
P resident
R o b ert L. C larkson
Vice-C hairm an o f the Board
V ice-P residents
C arl J. Schm idlapp
R eeve Schley
H e n ry O llesm eim er
Jam es T. Lee
S h errill Sm ith
A lfred C. A ndrew s
R obert I. B arr
G eorge T. W arre n
G eorge D. G raves
F ra n k O. Roe
H a rry H . P ond
Sam uel S. Campbell
W illia m E. Lake
C harles A. Sackett
H u g h N. K irk lan d
Jam es H . G annon
W illiam E. P u rd y
G eorge H . S aylor
M. H ad d en H ow ell
Joseph C. R ovensky
R uel W . P oor
Edw in A. Lee
L eon H . Jo h n sto n
W illiam H . M oorhead
H orace F. P o o r
E d w ard E. W atts
J. S p e rry K ane
F ran k lin H . Gates
T. A rth u r P y te rm an
A m rose E. Im pey
L ynde Selden
M aurice H . E w er
H ugo E. Scheuerm ann
R alph L. C erero
J a y D. R ising
H aro ld W . V anderpoel
Jam es B ruce
W a lte r S. Jelliffe
A rth u r W . M cCain
C laude H . B eaty
F red e ric k O. F o x c ro ft
V ice-P resident and Cashier
W illiam P. H olly
Central Western Banker, April, 1930
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Loan Bank Successful
Many Wyoming citizens do not ap
preciate, or maybe know, how suc
cessfully the state of Wyoming is op
erating the Farm Loan bank. Begin
ning in a small way in 1921 the re
volving fund of the bank has grown
by leaps and bounds, until today ap
proximately $7,000,000 has been
loaned to Wyoming farmers.
Figures in the office of the state
commissioner show that a total of $6,228,930 is outstanding of which but
2.46 per cent can be classified as de
linquent more than sixty days.
Goshen county received the most
loans, $793,000 going to this county.
Lincoln county benefitted to the extent
of $148,350.
29
...................................................................................................inumili..... ....................................................................
New Mexico News
............................................................. limn.....umilili..... umilili..... ................................ .................................................................................................................. .
Discuss Agriculture
Decided progress in the farming and
livestock business in New Mexico was
shown in reports presented to the ag
ricultural division of New Mexico
Bankers’ association, at their meetings
in Las Cruces, by Arthur F. Jones,
cashier of the First National bank of
Portales and chairman of the agricul
tural committee of the association.
The meeting was especially favored by
the presence of Hon. Dan H. Otis, di
rector of the American Bankers’ asso
ciation, Madison, Wis., who emphasiz
ed the importance of cooperation of
bankers with the state agricultural col
leges and the extension service in put
ting over a program in progressive ag
riculture.
Some of the important activities of
the New Mexico bankers in coopera
tion with countv extension agents, as
presented by Mr. Jones, included:
conducting educational tours; secur
ing purebred breeding stock, especial
ly sheep and cattle; working for ap
propriation for extension work in
counties having no agents; securing
purebred seed for customers of the
banks; supplying spray material for
protection of crops; cooperating with
farmers in conducting demonstrations
in feeding New Mexico crops to New
Mexico livestock; obtaining terracing
machinery for demonstrating terrac
ing; financing boys’ and girls’ club
projects; donating cash prizes for 4H club work and county fairs and en
couraging better farm and ranch me
thods among the clientele of the re
spective banks.
The American National Bank of
S^ver City in cooperation with the
extension service, sponsored a tour to
the Highland Hereford Breeding as
sociation at Marfa, Texas, and in ten
months following the results show
that more than 500 head of good re
gistered bulls and about 1,000 head of
high grade registered cows and heif
ers replacing scrub and low quality
stock. Marked progress is also report
ed in Union county as a result of co
operation of the key bankers in financ
ing livestock improvement work.
Bankers Organize
What is known as Group 5 of the
New Mexico Bankers Association met
in Tucumcari and perfected an organ
ization by electing H. B. Jones of
First National, Tucumcari, chairman;
W. C. Zerwer of Clovis, vice-chair
man ; Glen Hauser of American Na
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
tional, Tucumcari, secretary-treasurer.
The object and purpose of this or
ganization is to discuss matters of mu
tual interest to the bankers comprising
the organization, and the organization
is broad in its scope as all employes of
the banks are allowed to become mem
bers. The next meeting will in all
probability be held at Clovis and dis
cussion of many subjects will be a
part of the program. The meeting held
in Tucumcari was for the purpose of
organizing.
Valley Bankers Meet
Representatives of the banks of the
Pecos valley met at Artesia, New
Mexico, for their quarterly business
meeting recently with every bank in
the valley represented.
President G. K. Richardson, of
Carlsbad, presided at the meeting at
which session the constitution and by
laws committee made their report and
the proposed constitution was adopted.
Many other matters concerning uni
formity of service charges and items
of interest to the banking profession
was discussed in detail. One of the
most important questions under con
sideration is the matter of a credit bu
reau.
A
Correspondent
Service
developed
68 years’
from
experience
F O R E M A N -S T A T E N A T IO N A L BANK
FO REM AN -STATE TRUST A N D SA V IN G S BANK
CHICAGO
RESOURCES
EXCEED
2 00
MI LLI ON
DOLLARS
Central Western Banker, April, 1930
30
Kansas New;
Arkansas City Bank Elects
Officers and directors of the Secur
ity National Bank at Arkansas City,
Kansas, were re-elected at the recent
annual meeting of that institution.
This bank was recently purchased in
part by the Exchange National of Tul
sa. W. C. Robinson, Sr., again chosen
chairman of the board of directors, is
the oldest Kansas banker in point of
service. His son, W. C. Robinson, Jr.,
is president of the bank. Felix Sim
mons is vice president and cashier.
Installs New Equipment
The Prairie State Bank of Augusta,
Kansas, has installed complete new
equipment the most modern of bank
fixtures. A new vault has also been
installed.
Purchases Topeka Interest
J. H. Collingwood, President of the
Fidelity Savings State Bank of To
peka, and R. H. Fromme, of Sabetha,
have purchased a substantial interest
in the Farmers State Bank of Sabetha,
according to a recent announcement.
Install Service Charge
Chase County banks, w o r k i n g
through the county association, re
cently installed a service charge of
fifty cents a month on accounts aver
aging less than fifty dollars. Banks
which belong to the county association
and have put the service fees into ef
fect, are: Strong City State Bank,
The Peoples Exchange Bank at Elmdale, The Saffordville State Bank, the
Cedar Point State Bank, the Exchange
National Bank at Cottonwood Falls,
the Matfield Green State Bank, and
the Clements State Bank.
Lowers Discount
The Bank of Poland has reduced its
discount rate from 8J 2 per cent to 8
per cent, it is reported. The rate on
collateral loans was reduced from
per cent to 9 per cent. The reduction
in the discount rate is the second to
occur in Poland within four months,
the rate having been lowered from 9
per cent to 8j^ per cent on November
15, 1929.
Living on Water
“Here’s a story about a woman who
lived on water for forty days.”
“That’s nothing, my Uncle’s been
living on water for the last thirty
years.”
“How could he live on water for
thirty years?”
“He’s a sea-captain.”
Personal Testimonial
A clergyman was grieved to find his
services for men were poorly attended.
He spoke about it to the verger one
evening which it chanced that they
were the only two at the meeting.
“I really think they ought to come,”
he said sadly.
“That’s jest what Eve sed to ’em
over an’ over again,” said the verger
consolingly. “I sez to ’em—‘Look at
me,’ I sez, ‘look at me. I goes to all
them services,’ I sez, ‘an’ what ’arm
does they do me?’ ”
Like Father!
“Jimmy, I wish you’d learn better
table manners; you’re a regular little
pig at the table.”
Deep silence on Jimmy’s part. So
father, in order to impress him more,
added, “I say, Jimmy, do you know
what a pig is?”
“Yes, sir,” replied Jimmy meekly,
“It’s a hog’s little boy.”
Big Business
Sambo—Yes, suh, business ben fine.
Mah wife done gib me $10 an’ ah
bought a pig. Ah kept tradin’ fo’
eberything under the sun, till finally
ah gets a bicycle, an ah sold it fo’ $ 10 .
Rastus—But you-all doan’ make any
money.
Sambo—Co’se not. But look at de
business ah’s been doin’. — Montreal
Star.
AUSTRALIA
BANK O F NEW SO U T H W ALES
E S T A B L IS H E D
(W it h
w h ic h is a m a lg a m a t e d T H E
P A I D - U P C A P I T A L _________________________________
R E S E R V E F U N D ___________________________________
R E S E R V E L IA B IL IT Y O F P R O P R IE T O R S —
f
1817
W E S T E R N A U S T R A L IA N
.
BANK
_________________________ $37,500,000
________________________
30,750,000
________________________
37,500,000
Aggregate Assets 30th September, 1929, $454,031,485
A G E N T S — F IR S T
N A T IO N A L
BANK,
OM AHA, N E B R A SK A
HEAD OFFICE, GEORGE ST., SYDNEY
G E N E R A L M A N A G E R , A L F R E D C H A R L E S D A V ID S O N
LON DON OFFICE, 29 THREADNEEDLE ST., E. C. 2
588 B r a n c h e s an d A g e n c ie s in a ll A u s t r a lia n States, F e d e r a l T e r r i t o r y , N e w
N e w G u in e a , an d L o n d o n .
THE CENTRAL WESTERN BANKER, OMAHA,
Z e a la n d ,
F iji,
Papua,
M an dated
T e r r it o r y
of
P u b l is h e d b y D e P u y P u b l is h in g C o m p a n y
410 A rth u r Bldg., O m aha, N ebraska
C lifford D e P u y , P u b lish er
G erald A . S nider , A ssociate P u b lish er
W m . H . M aas, 1221 F ir s t N atio n al B ank B ldg., Chicago, V ice-P resident
Central Western Banker, April, 1930
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Federal Reserve Bank of St. Louis
R. W . M oorhead , E d ito r
L. D. V an D oran , A ssociate E d ito r
F ra n k P. Syms, 25 W est 45th S tree t, N ew Y ork, V ice-P resident
W h e re you can d rin k o f
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Amid Surroundings o f Unsurpassed
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V isitors to th is finely a p p o in te d , lu x u rio u s h o te l acclaim it
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re d e c o ra te d a n d e q u ip p e d w ith u n su rp a sse d elegance, T h e
E lm s w ill a p p e a l to th e m o st fa stid io u s c r m o st critica l guest.
H e re y o u c a n to n e u p y o u r system , re g a in y o u r h e a lth w ith
o u r w o rld fa m o u s m in e ra l w aters a n d b a th s a n d if y o u w ish,
e n jo y a ll th e pleasu res o f re so rt life, golfing, sw im m ing,
h o rse -b ack rid in g , b o atin g , te n n is, etc. F o r re serv atio n s o r
b e a u tifu lly d o n e b o o k , fu lly illu stra tin g th e b ea u tie s o f T h e
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One o f th e “W orlds M ost R im on s M in era l S prin gs R esorts
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